Decline of Crude Oil Leads to Losses for Canadian Dollar

The Canadian dollar fell against other majors during the current trading session, largely due to the drop of crude oil prices. The currency fell even against the US dollar despite the earlier rise to the highest level since January.

Futures for crude oil traded 1.12 percent lower at $59.82 per barrel in New York today. Prices were under pressure from oversupply on the market. The bounce of the US currency after the initial drop also hurt dollar-priced commodities.

Yet not everything was bad for the Canadian currency as speculators pared bets on a second interest rate cut from the Bank of Canada this year. This allowed the loonie to touch the strongest rate since January 20 against the greenback earlier during the trading session.

USD/CAD rallied from 1.1956 to 1.1994 as of 19:06 GMT today after reaching the session low of 1.1920 earlier. EUR/CAD gained from 1.3573 to 1.3673. CAD/JPY went down from 99.60 to 99.35.

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