Canadian Dollar Weakens Amid Crude Oil Price Drop

The Canadian dollar showed some weakness against its US counterpart on Monday morning.

At 9:09 a.m. CDT, the loonie was trading at $0.7087 or $1=C$1.4110, down slightly from Friday's close of $0.7096 or $1=C$1.4093.

The recent pause in fighting between the US and Iran over the weekend weighed on crude oil prices, which had a spillover effect on the Canadian currency. West Texas Intermediate (WTI) crude oil fell 5.6% to $84.29 per barrel.

Analysts expect the US Federal Reserve to leave interest rates unchanged when it makes its next announcement on Wednesday. However, accompanying statements from the central bank will be closely watched for any hints of future rate hikes, with some predicting a rate increase as early as September.