Canadian Dollar Continues to Follow Crude Oil Prices Down

The Canadian dollar ended the Friday’s trading session flat against its US counterpart. The loonie dropped against other major currencies, falling to the lowest level in three months versus the Japanese yen.

As it was happening for some time lately, the Canadian currency followed crude oil prices yesterday. Unfortunately for the currency, crude is mostly going lower nowadays due to the pressure from oversupply. Prospects for an end to the US oil export ban added to the downside momentum of the commodity.

While the loonie dropped against most major currencies, including the very strong yen, it fared better versus the greenback. The reason for such performance is that markets continue to digest the Federal Reserve’s decision to hike interest rates and are trying to assess what it means to the Forex market.

USD/CAD settled at 1.3942, very close to the opening rate of 1.3936. EUR/CAD advanced from 1.5078 to 1.5158 after dropping to the low of 1.5021. CAD/JPY was down from 87.91 to 86.94 — the lowest settlement since December 2012.

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