Canadian Dollar Falls as Oil Prices Sharply Decline

The Canadian dollar lost its gains against the US dollar earlier today as a drop in oil prices overshadowed uncertainty about the presidential election in the USA.

The weekly report for the official US crude stockpile figures from the Energy Information Administration revealed that crude inventories rose by 14.4 million barrels for the week ended October 28, which is more than the increase in stockpiles reported by the American Petroleum Institute yesterday at 9.3 million barrels.

The sudden rise in inventories caused a sharp decline in crude prices, to which the Canadian dollar is closely correlated. The currency lost all of the gains it made today despite increased bearish pressure on the US dollar.

The greenback was hit with more losses on Wednesday as the presidential race between Hillary Clinton and Donald Trump tightened, which increased investors’ anxiety and reduced their appetite for the US currency. A statement from the Federal Open Market Committee that was released at 18:00 GMT today carried a decision to keep its monetary policy unchanged, which matched expectations and had no mentionable effect on the movement of the US dollar.

USD/CAD traded at 1.3393 as of 22:45 GMT after touching 1.3360 at 14:40 GMT today. The pair is still trading lower than its highest level yesterday at 1.3421.

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