The USD/CAD currency pair edged lower to around 1.3830 during Asian hours on Thursday, pressured by a softer US Dollar and climbing oil prices. According to FX Street, the pair faced downward momentum as a rally in the Japanese Yen also weighed on the US Dollar.
FX Street reported that the stronger Yen contributed to the US Dollar's weakness, which in turn influenced the USD/CAD decline. Rising crude oil prices further supported the Canadian Dollar, given Canada’s status as a major oil exporter, amplifying the pair’s drop.
For Japanese investors, movements in USD/CAD and the USD are closely watched, as fluctuations in the Dollar and commodity-linked currencies can impact cross-asset strategies and risk sentiment in Asian markets.