The USD/CAD currency pair declined for the third consecutive day, trading near 1.3870 during Asian hours on Monday. This continued weakness reflects a softer US Dollar amid rising oil prices, which tend to support the Canadian Dollar.
According to FX Street, the pair’s downward momentum highlights how oil’s influence remains a critical factor for the Canadian currency, given Canada’s status as a major energy exporter. The US Dollar’s recent softness has further pressured the pair lower.
For Japanese investors, monitoring USD/CAD movements is essential as fluctuations in commodity-linked currencies can impact global risk sentiment and cross-asset flows in FX and equities markets.