Investing.com - The Canadian dollar was steady at one-month highs against its U.S. counterpart on Monday, supported by higher prices for oil, a major Canadian export.
USD/CAD touched lows of 1.3485, the lowest since April 24 and was at 1.3498 by 09.46 ET, off 0.09% for the day.
The greenback remained on the back foot after last week’s selloff despite relative calm in U.S. politics with President Donald Trump on a trip to the Middle East.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.2% at 96.81, which was its deepest trough since November 9.
The index ended the previous week down 2.12%, having given up all the gains it had made following the U.S. presidential election in November amid fears that the U.S. political system could become engulfed by crisis, preventing lawmakers from pushing through tax or spending reforms.
With Trump on his first official overseas trip as president, the steady stream of revelations surrounding the FBI’s investigation into alleged Russian interference in November’s presidential election has receded.
The dollar came under renewed selling pressure on Friday following reports that a senior White House adviser is a person of interest in the probe into Russia’s role in the election.
The dollar has been hard hit by fears that the U.S. political system could become engulfed by crisis, preventing lawmakers from pushing through tax or spending reforms.
Demand for the loonie was supported in part by higher oil prices.
Oil prices hit the highest levels in around four weeks on growing expectations that members of Organization of the Petroleum Exporting Countries will agree to extend or even deepen production cuts when they meet later this week.
Brent crude, the global benchmark, rose 47 cents, or 0.88%, to $54.08 a barrel. On the New York Mercantile Exchange, U.S. crude futures were trading up 41 cents, or 0.81%, at $51.08 a barrel.
Trade volumes remained thin on Monday, with financial markets in Canada closed for a holiday.