The Canadian dollar was tracking move of crude oil very closely in the recent past, and today’s trading session was no different. Prices for crude rallied, and the loonie followed them.
There were reports that Saudi Arabia approached Russia with an offer to make a deal between OPEC and non-OPEC producers to cut output. Such move is expected to buoy oil prices. There is nothing tangible yet, and many analysts think that an agreement would never be achieved. Yet the news was enough to propel crude oil higher.
Adding to the strength of the Canadian currency was the weakness of the US dollar and the outlook for gradual monetary tightening from the Federal Reserve. Those factors were helping riskier currencies to gain during the current session.
USD/CAD dropped from 1.4094 to 1.4036 as of 22:44 GMT today. CAD/JPY gained from 84.18 to 84.56. EUR/CAD was barely changed at 1.5357.
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