Skip to content Canadian Dollar Surges to New Peak Driven by Oil Gains
The Canadian dollar, often called the loonie, strengthened to about 1.389 per U.S. dollar, reaching its highest point since October 25. This boost came from rising oil prices and changing investor attitudes as they rethought the possible outcomes of the upcoming U.S. midterm elections.
US Tariffs Could Hit Canada Hard if Republicans Win
Many expect a Republican victory, leading to stricter trade policies like new import tariffs. Since Canada sends about 75% of its exports to the United States, such policies could greatly impact its economy.
Tariff Concerns Push U.S. Dollar Lower Against Rivals
Investors speculate that introducing new tariffs might push U.S. inflation higher. Higher inflation could make the Federal Reserve less likely to cut interest rates. As a result, the U.S. dollar weakened against other major currencies. At the same time, negative bets against the Canadian dollar hit their highest level since mid-August.
Adding to the loonie’s strength, oil prices climbed 2.85% to $71.47 per barrel after OPEC+ decided to delay increasing production. Because oil is a major export for Canada, higher oil prices tend to boost its economy.
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