Crude oil demonstrated big gains during the Tuesday’s trading session, and so did the Canadian dollar — the currency that is closely tied to crude.
Futures for crude oil rallied more than 4% today. The rally was a result of rumors that Saudi Arabia and Russia have achieved an agreement about production freeze. Now, traders wait for the meeting of major oil-producing countries in Doha, Qatar, on April 17, where producers will discuss output cap and other measures to support prices.
Earlier, high-beta currencies were under pressure from the firm US dollar. Yet the strong gains of crude oil allowed them to rebound.
USD/CAD dropped 1% from 1.2897 to 1.2762 as of 19:53 GMT today, trading near the lowest level since July 15. EUR/CAD declined from 1.2% 1.4712 to 1.4535, close to the lowest rate since March 10. CAD/JPY surged 1.6% from 83.69 to 84.99, reaching the highest level in a week.
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