The Canadian dollar gained ground on Monday, buoyed by rising oil prices. As a significant exporter of crude oil, the Canadian economy and its currency are closely linked to the commodity’s performance in global markets.

West Texas Intermediate (WTI) crude, a key benchmark for oil prices, experienced an uptick, providing a tailwind for the loonie. This positive movement in oil prices reflects increased demand and supply-side factors influencing the energy sector.

Market participants are also keenly awaiting the release of upcoming Canadian economic data. These figures will provide further insights into the health of the Canadian economy and potentially influence the Bank of Canada’s monetary policy decisions.

Analysts suggest that sustained strength in oil prices, coupled with positive economic data, could provide further support for the Canadian dollar in the near term.