Canadian Dollar Weakens Amid Pause in US-Iran Tensions and Crude Oil Price Decline

The Canadian dollar experienced a slight decline on Monday morning relative to its US counterpart. As of 9:09 a.m. CDT, the Loonie was trading at US$0.7087 or US$1 = CAD $1.4110, compared to Friday's close of US$0.7096 or US$1 = CAD $1.4093.

The downward trend in the Canadian dollar is largely attributed to a pause in fighting between the US and Iran over the weekend, which had a ripple effect on crude oil prices. West Texas Intermediate (WTI) saw a 5.6% decline to US$84.29 per barrel.

The upcoming interest rate announcement by the Federal Reserve on Wednesday is also being closely watched. Analysts expect the central bank to maintain its current rates, but are anticipating a potential rate hike as early as September.