Forex – USD/CAD Hovers Near 2-Month Lows in Early Trade

Broadly weaker greenback under pressure vs. loonie – The U.S. dollar was hovering near 2-month lows against its Canadian counterpart on Tuesday, as sentiment on the greenback remained globally fragile on the first trading day of the year and as rising oil prices lent support to the commodity-related Canadian currency.

was little changed at 1.2544 by 09:30 a.m. ET (13:30 GMT).

The U.S. dollar weakened in 2017 as the global economy gained momentum fueling expectations for tighter monetary policy in other countries, which would lessen the divergence between the Federal Reserve and other central banks.

Market watchers were looking ahead to Wednesday’s of the Fed’s December meeting for further hints on the future path of monetary policy, as well as the due on Friday.

Meanwhile, the Canadian dollar benefitted from an increase in to multi-year highs, as sparked concerns over potential supply disruptions in the region and as supply cut efforts by global oil producers continued to the commodity.

The loonie was lower against the euro, with gaining 0.29% to 1.5107.

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