Canadian Dollar Hits Two-month Highs Versus the Greenback as Crude Oil Jumps

Canadian dollar shot versus its American counterpart on Tuesday amidst rising crude oil prices while the greenback fell broadly against most of its peers, especially the Euro.

The commodity-linked currency Canadian dollar jumped to a two-week high at C$1.31850 per dollar, adding more than 0.4 percent on Tuesday as crude oil futures prices were on track for its fourth gain in a row. Indeed, while August West Texas Intermediate crude soared 2.3 percent, the Brent oil for August delivery climbed 2.6 percent in North American trading session.

The advance came on the back of forecasts anticipating that U.S. crude supplies would witness a weekly decline due to weather factors. The American Petroleum Institute is due to release its estimate for U.S. inventories later in the day while the U.S. Energy Information Administration is scheduled to publish the official data on Wednesday.

While the Loonie was supported by gains in crude oil prices, the dollar lost ground against most of its rivals. The Dollar Index, which measures of the strength of the greenback against a basket of six major rivals, shed more than 0.6% with the euro holding the largest weighting in the gauge.

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