The Canadian dollar gained ground against its U.S. counterpart on Monday, supported by an increase in oil prices. Higher crude prices often benefit the Canadian economy, which is a major oil exporter.

In addition to oil prices, positive domestic economic data also played a role in the CAD’s strength. Recent figures have indicated a modest recovery in the Canadian economy, bolstering confidence in the currency.

Analysts noted that the CAD’s performance is also influenced by broader global economic trends. Investors are closely monitoring developments in major economies, such as the United States and China, for signals about future growth prospects.

The currency’s movement reflects the interplay of commodity prices, domestic economic performance, and global economic sentiment. Market participants will continue to assess these factors to gauge the CAD’s trajectory.