The Canadian dollar strengthened on Tuesday, trading 0.2% higher at C$1.3788 per U.S. dollar, or 72.53 U.S. cents. The loonie moved between C$1.3776 and C$1.3819, according to Reuters market data, while the USD/CAD pair was around 1.3802 at 9:37 a.m. ET, down about 0.09% on the day.
Oil provided support. Crude prices rose to multi-month highs on escalating Middle East tensions, attacks on Saudi energy facilities and concerns over tanker traffic through the Strait of Hormuz. U.S. crude futures were last recorded around $92.73 a barrel.
Trade and labor-market developments added to currency concerns. Canada put retaliatory tariffs on C$20 billion of U.S. goods into effect on Tuesday after bilateral negotiations stalled. Canadian data showed the economy lost 41,700 jobs in August, while U.S. payrolls rose by 162,000.
Markets are also watching upcoming U.S. inflation data later in the week for clues about the Federal Reserve's September policy decision.
