Canadian dollar gains as oil prices climb

The Canadian dollar strengthened modestly against the U.S. dollar as crude oil prices climbed to nearly six-week highs, supporting Canada’s commodity-linked currency. USD/CAD fell 0.12% to around 1.4085–1.4091, recovering part of Tuesday’s loss. The move was driven mainly by higher oil prices amid renewed concerns about Middle East supply disruptions, including escalating U.S.-Iran tensions and Houthi threats to shipping. However, gains in the loonie were capped by weaker-than-expected Canadian inflation data and the impact of newly imposed 50% U.S. tariffs on a broad range of Canadian goods. The article frames the currency move as a modest risk-sensitive response to oil strength rather than a broader trend reversal, with trade uncertainty still weighing on sentiment.