The Canadian dollar fell as an easing of tensions in the Middle East triggered a decline in the price of oil, the nation’s biggest export.
Speculation U.S.-Iranian relations are thawing pushed West Texas Intermediate crude to the lowest in more than six weeks before a possible meeting between President Barack Obama and Iran’s Hassan Rohani at the United Nations General Assembly today. The currency earlier approached a three-month high following a rebound in July retail sales.
The Canadian currency is following oil lower as developments in the Middle East imply more abundant oil supplies and “the risk premium comes off in the pricing of crude oil,” Jack Spitz, managing director of foreign exchange at National Bank of Canada (NA), said by phone from Toronto. “It’s no big surprise to see the dip buying mentality that exists in dollar-Canadian dollar still holds true today.”
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