Loonie Loses Ground Amid Oil Price Surge and Trade Uncertainty

The Canadian dollar experienced a minor decline against its US counterpart on Thursday due to increased oil prices and trade uncertainties. The US dollar traded at C$1.3808, marking a slight drop from Wednesday's close of C$1.3805.

The surge in oil prices above $100 a barrel was driven by escalating US-Iran hostilities and concerns over Middle Eastern energy flows. This typically supports the Canadian currency due to its commodity-linked nature and reliance on energy exports for trade income.

However, this support was offset by broader risk aversion and ongoing uncertainty surrounding Canada-US trade relations.