Loonie Soars as Oil Prices Reach One-Month High

The Loonie has outperformed the US Dollar on Tuesday, driven by surging oil prices. The USD/CAD pair is down 0.25% to near 1.3780 as investors turn their attention to the energy market. Oil prices have rallied amid fears of a prolonged supply disruption in the Strait of Hormuz.

The WTI Oil price has risen around 0.8% to near $91.50, close to its over a month high of $92.25 touched on June 8. Higher oil prices bode well for currencies from economies like Canada, which are net energy exporters.

The US Dollar is under pressure ahead of the United States' Producer Price Index (PPI) and Consumer Price Index (CPI) data releases for August, scheduled for Thursday and Friday respectively. The US Dollar Index trades 0.11% lower to near 98.80.