Canadian Dollar Weakens Amid Crude Oil Price Decline

The Canadian dollar weakened on Monday due to significant losses in crude oil prices. The energy-linked currency, closely tied to the price of oil, suffered a decline as West Texas Intermediate (WTI) plummeted by 8.3% to $81.93 per barrel. This downturn weighed heavily on the Canadian dollar, which settled at US$0.7085 or US$1=C$1.4114.

The recent pause in fighting between the U.S. and Iran over the weekend likely contributed to the decline in oil prices. Market analysts are now looking ahead to the upcoming interest rate announcement from the U.S. Federal Reserve on Wednesday, where a decision to leave rates unchanged is widely expected. However, accompanying statements may provide valuable insights into future monetary policy moves, with some predicting a potential rate hike as early as September.

In other economic news, Canadian inflation data will be released on Friday, and pre-report estimates suggest a small 0.2% gain in the country's gross domestic product (GDP). Meanwhile, the Toronto Stock Exchange Composite Index rose by 199.04 points to 35,568.14 points.