INV: Canadian dollar little changed on weak oil prices
Investing.com - The Canadian dollar was little changed against its broadly weaker U.S. counterpart on Monday as gains were held in check by weaker prices for oil, a major Canadian export.
USD/CAD was at 1.3377 by 09.40 ET, not far from Fridayâ€™s close of 1.3375.
The U.S. dollar remained broadly weaker as doubts about the Trump administrationâ€™s ability to deliver on campaign economic pledges rattled investors.
A planned vote on a healthcare overhaul was pulled late Friday after it didnâ€™t gather enough support from Republicans.
The vote had been viewed by investors as a critical test of President Trump's ability to work with Congress to deliver on his pro-growth economic agenda, including tax cuts and infrastructure spending.
The U.S. dollar index, which measures the greenbackâ€™s strength against a trade-weighted basket of six major currencies, was down 0.87% at 98.87, its lowest trough since November 11.
The index had surged to almost 14-year highs in early January on the back of expectations for a strong economic recovery and higher inflation, the so called â€˜Trump Tradeâ€™.
Gains for the loonie, as the Canadian dollar is also known, were checked as oil prices fell towards $50 a barrel amid a lack of clarity on whether an OPEC-brokered output cut will be extended beyond June in a bid to support the market.
Fridayâ€™s lackluster domestic inflation data also weighed on the Canadian dollar.
The annual inflation rate dipped to 2.0% in February from 2.1% in January, Statistics Canada said, in a report that gave the Bank of Canada leeway to keep interest rates on hold for longer.