The U.S. dollar was almost unmoved against its major opposing currencies on Wednesday’s early trade. The Canadian dollar is currently close to notching a three-week high as it was somehow given a lift by the surge in oil prices.
On the previous day, the price of oil jumped to its highest level in about 2 years. This came in after the released news that suggested a voluntary supply reduction led by the Organization of Petroleum Exporting Countries (OPEC) and a crude pipeline blast in Libya.
In reaction to the news, the Canadian dollar was given support by the crude rally, given that it is one of the currencies that are commodity-linked. OANDA’s head of trading in Asia-Pacific Stephen Innes said it still not clear if higher oil prices would stay a little longer. He added that the Lonnie can also support other oil-related currencies because a lot of market participants are ahead of the holiday year-end, making an exaggerated movement in other currencies.
The Lonnie was last seen at C$1.2694 per U.S. dollar. The Canadian dollar reached its best level since December 6 on the previous trade at C$1.2684.
Meanwhile, the index which measures the value of the greenback relative to its major peers, the U.S. dollar index, came in steady at 93.300. The dollar was marginally higher against its Japanese counterpart by 0.1 percent at 113.31 yen. The euro was also unmoved at $1.1860.