Canadian Dollar Hits 4-week High

The Canadian dollar depreciated by 0.3% toward 1.36 against the USD on Friday, as the currency reacted to a sharp 12% dive in oil prices to $82. This drop followed news that the Strait of Hormuz is "completely open" to commercial vessels during a ceasefire between Israel and Lebanon, which has quickly reduced the fear of a global energy crisis. Because Canada is a major oil exporter, the lower prices mean less income for the country, putting pressure on its currency. At the same time, the de-escalation of the conflict has calmed inflation worries, leading investors to bet that the Bank of Canada will cut interest rates sooner than expected. Although the US Dollar Index (DXY) also fell to 97.7, the combination of cheaper oil and the shift toward lower interest rates has tempered the recent demand for the Canadian currency.

The Canadian Dollar touched 1.37 against the USD, the highest since March 2026. Over the past 4 weeks, US Dollar Canadian Dollar lost 0.44%, and in the last 12 months, it decreased 1.25%.

The Canadian dollar strengthened 0.18% to trade around 1.37, reaching its strongest level since March. This recovery was primarily driven by a broader depreciation of the US dollar, as the DXY fell toward the 98.05 level. Technically, the USDCAD has pulled back from April highs near 1.390 and is now testing key support at 1.374. The loonie's gains are also supported by solid domestic data, including a 3.6% surge in Manufacturing Sales and a 2% rise in Wholesale Sales for February. While oil prices remain a factor for the commodity-linked currency, the current trend mainly reflects the greenback's widespread weakness across global markets.