The Canadian dollar climbed to its strongest level in nearly three months against the U.S. dollar on Thursday as rising oil prices and broad dollar weakness lent it support. Top Canadian and U.S. trade negotiators also met in Washington for a second straight day to work toward a deal that could ease months of tariffs.
The loonie traded 0.1% higher at 1.3790 per U.S. dollar, or 72.52 U.S. cents. It touched its strongest intraday level since May 21 at 1.3757.
Rising oil prices and broad U.S. dollar weakness tied to concerns about growing U.S. government debt supported the Canadian currency, said Darren Richardson, chief operating officer at Vantry Capital Inc. The Treasury Department said Wednesday that total U.S. debt exceeded $40 trillion for the first time.
Even so, the U.S. dollar edged higher against a basket of major currencies after facing pressure on Wednesday, when the Treasury took steps to calm a bond market selloff.
Oil, a key Canadian export, increased after President Donald Trump warned of potential retaliation against nations supporting Iran. U.S. crude oil futures traded 2% higher at $87.50 per barrel.
Top trade negotiators from Canada and the United States met for a second consecutive day in Washington on Thursday to work toward completing an agreement that could reduce months of tariffs and counter duties. Canadian bond yields rose during the session.
Source: Investing.com
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