Canadian Dollar Hits Five-Week High Against U.S. Dollar
The loonie strengthened to 1.3640 per U.S. dollar as diplomatic optimism offset softer inflation data. Rising oil prices also supported the currency's gains.
The Canadian dollar reached a five-week high against its counterpart in the United States on Monday as investors maintained hope for a diplomatic end to Middle East hostilities. This optimism outweighed domestic data indicating that inflation rose less than analysts had forecast. The USD/CAD currency pair was trading 0.4% higher at 1.3640, having reached an intraday peak of 1.3636, its strongest level since mid-March.
Market sentiment remains buoyed by the potential for a deal between the American government and Iran. This shift has reduced demand for the safe-haven U.S. dollar, which reversed gains made earlier in the weekend. George Davis, chief technical strategist at RBC Capital Markets, noted that the market is maintaining an optimistic outlook regarding these diplomatic efforts.
