Canadian Dollar Slides to Near Two-Week Low as Oil Prices Drop Ahead of Fed Decision

Loonie tracks oil lower

The Canadian dollar weakened 0.2% against its U.S. counterpart on Monday, trading at 1.4115 per U.S. dollar, or 70.85 U.S. cents. During the session, the loonie touched an intraday low of 1.4119, its weakest level since July 14.

The move tracked a sharp pullback in oil prices, a key driver for the commodity-linked currency. West Texas Intermediate crude slipped below key support levels, pressured by demand concerns and broader strength in the U.S. dollar.

Eyes on the Fed

The currency moves came as investors positioned ahead of this week's Federal Reserve interest-rate decision, a event that could shape near-term direction for both the U.S. dollar and oil-sensitive currencies like the loonie.

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