Forex
Loonie Loses Ground as US-Iran Talks Boost Oil Price Hopes
The Canadian Dollar (CAD) weakened against major currencies on Tuesday due to falling Oil prices. US Treasury Secretary Scott Bessent's comments on US-Iran talks also played a role in the decline.
Bessent told CNBC that 'We are in talks with the Iranians' and there is a chance for a deal today or tomorrow, which could lead to a more normalized position in the conflict. This led to a slight weakening of the US Dollar (USD) but had little impact compared to falling Oil prices.
The Loonie is sensitive to Oil price movements as Canada is a major exporter of Oil. West Texas Intermediate (WTI) traded around $75.50, down nearly 4% on the day and at its lowest level since July 13.