Loonie Surges as Oil Prices Reach Three-Month High

The Canadian dollar reached its highest point in nearly three months due to an increase in oil prices and market expectations surrounding renewed US-Canada trade talks.

The loonie strengthened to 1.3790 per US dollar, a level it hadn't seen since May 21st, while Canada's 10-year government bond yield climbed alongside US yields.

The primary drivers of this movement were the 2% rise in West Texas Intermediate crude (WTI) oil prices to $87.50 a barrel and the softening of the US dollar as investors grew concerned about the growing US debt load, according to Reuters.