The USD/CAD currency pair extended its upward momentum for the third consecutive day, trading around 1.3840 during Asian hours on Friday, according to FX Street. This continued strength in the US dollar against the Canadian dollar is largely attributed to the weakening of the Canadian currency amid falling oil prices.
Oil prices play a significant role in the Canadian dollar's performance, given Canada’s status as a major oil exporter. The recent decline in crude prices has pressured the CAD, allowing the USD/CAD pair to push higher.
For Japanese investors closely monitoring commodity-linked currencies, the USD/CAD movement highlights the ongoing impact of global energy markets on FX pairs, underscoring the importance of oil price trends in trading decisions.