Canadian Dollar Surges on Oil Prices

The Canadian dollar benefited from the rise in global oil prices, despite the Biden administration’s announcement to release 50 million barrels of US strategic oil reserves in an attempt to tame the sharp rises in fuel prices in the United States.

The Canadian dollar rose, pushing the USD/CAD pair down, to close Tuesday’s session at 1.2673 versus 1.2695 on Monday.

The pair rose to its highest level over the course of Tuesday’s trading at 1.2744, compared to the lowest recorded at 1.2673.

Despite the decision to release tens of millions of barrels of oil from the US strategic oil reserves on Tuesday, oil futures contracts continue to rise since the beginning of US trading.

The new developments regarding the use of US strategic oil reserves did not affect the resistance to the sharp rise in prices because the markets have been anticipating this decision lately.