The Canadian dollar edged lower on Thursday, trading around 72.42 U.S. cents as the greenback held firm near C$1.3808, up roughly 0.02% from Wednesday’s close at C$1.3805.
The loonie had weakened about 0.2% to C$1.3805 per dollar on Wednesday, after briefly strengthening to C$1.3767 earlier in that session.
Brent crude remained above $100 a barrel, trading near $102, while U.S. crude hovered around $97. The price support came amid escalating U.S.-Iran tensions and concerns about potential disruptions to energy flows through the Middle East.
Despite the elevated oil prices — historically a tailwind for the commodity-linked loonie — downward pressure on the Canadian dollar persisted, driven by broader risk aversion and lingering uncertainty over Canada-U.S. trade relations.
Investors were turning their attention to U.S. producer-price data and other inflation indicators due later in the week, seeking signals on the Federal Reserve’s next policy move.
