Loonie Soars Near Two-Month Highs as Oil Prices Rally
The Canadian dollar is trading near its strongest level in two months against the US dollar, thanks to rising crude oil prices and a softer greenback. As of mid-February 2026, USD/CAD hovers around 1.34, down from over 1.38 in late 2025, reflecting a roughly 3% appreciation of the loonie.
The move underscores the close link between Canada's commodity exports and its currency, with West Texas Intermediate (WTI) crude climbing above $78 per barrel on supply concerns and improved global demand forecasts.
Market analysts point to resilient Canadian economic data, including stronger-than-expected employment figures and retail sales, which have reduced bets on aggressive Bank of Canada rate cuts. The central bank has held its policy rate at 4.25% since January, signaling a cautious approach amid mixed inflation signals.