The Canadian Dollar strengthened against the US Dollar on Monday, supported by rising oil prices and a modest pullback in the US currency, FX Street reported. The USD/CAD pair fell by 0.24%, trading around 1.3870 after previously reaching its highest level in more than two weeks.
Scotiabank strategists Shaun Osborne and Eric Theoret noted that the USD/CAD rate is currently close to their fundamental equilibrium estimate of approximately 1.3920, suggesting the pair is near a fair value based on underlying economic factors.
For Japanese investors, this movement highlights the influence of commodity prices and US Dollar trends on currency pairs involving resource-linked currencies like the Canadian Dollar, which can affect FX and equity markets connected to energy sectors.