Canadian Dollar Weakens as Oil Prices Plunge on Peace Hopes

2026-04-17 14:36 By Juan Quintana 1 min. read

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.



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Canadian Dollar Weakens as Oil Prices Plunge on Peace Hopes
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.
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