USD/CAD Above 1.3150 Remaining Under Pressure

The Canadian dollar languished at 11 year low early on Tuesday after slipping along with other commodity currencies following a selloff in oil prices, stealing the focus from a subdued U.S. dollar that held steady against the euro and yen.

The loonie last traded at C$1.3154 per USD, not far from a low of C$1.3175 set overnight – a level not seen since August 2004. Trading was light with Canadian markets shut for a public holiday on Monday.

“The longer that crude takes to recover, the greater the risk to energy and lowers the hurdle for further easing down the line,” said Elsa Lignos, senior currency strategist at RBC Capital Markets.