USD/CAD Extends Slide as Oil Prices Spike on US-Iran Tensions
The USD/CAD pair extended its slide for a third consecutive session, trading near 1.3770 in Asian hours on Friday, as firmer crude oil prices lifted the Canadian dollar despite higher US Treasury yields.
The rise in oil prices was driven by escalating tensions between the US and Iran over the Strait of Hormuz, with Washington signaling fresh steps to restrict Tehran's economy. The proposed measures aim to cut Iran off from global commercial and financial networks, targeting banks, businesses, shipping registries, cash transfers, and smuggling operations.
The Canadian dollar also gained on broad USD softness and signs of progress in US-Canada trade negotiations, with Scotiabank noting that the currency's 0.3% rise was second only to the NZD among major peers.