The Canadian dollar fell against its US counterpart today as crude oil prices dropped. At the same time, the currency strengthened versus the euro and the Japanese yen.
Crude oil slumped today as much as 0.92 percent to $93.97 per barrel in New York. The prices were down because of the agreement about the Iranian nuclear program. The deal resulted in risk appetite on the Forex market and this would usually be helpful for the Canadian currency. But Canada’s economy strongly depends on oil exports, therefore falling prices for crude are not particularly helpful to the country and its currency.
The loonie was still able to outperform the euro, which was weakened by comments of central bank’s officials. The Canadian currency also gained against the yen that suffered from the traders’ positive mood.
USD/CAD rose from 1.0528 to 1.056 as of 17:17 GMT today and the daily high was at 1.0582 — the highest since July 8. EUR/CAD slid from 1.4266 to 1.4259 following the rise to 1.4327. CAD/JPY went up from 96.16 to 96.30.
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