The Canadian dollar fell against the U.S. dollar on Friday, pressured by persistently low oil prices. The loonie’s performance is closely tied to the energy sector, and the ongoing weakness in crude oil has dampened investor sentiment.
West Texas Intermediate (WTI) crude, the U.S. benchmark, traded near $23 a barrel, while Brent crude, the international benchmark, hovered around $32. The significant drop in demand due to the COVID-19 pandemic and the price war between Saudi Arabia and Russia have contributed to the oversupply in the market.
Analysts suggest that the Canadian dollar’s trajectory will largely depend on the stabilization of oil prices and the overall global economic recovery. The Bank of Canada’s monetary policy decisions will also play a crucial role in influencing the currency’s value.
Key factors influencing the Canadian dollar:
- Oil price volatility
- Global economic growth prospects
- Bank of Canada’s monetary policy
- US dollar strength
Investors are advised to monitor these factors closely to anticipate potential movements in the Canadian dollar.
