© Reuters. Broadly weaker greenback drops vs. loonie in early trade
Investing.com — The U.S. dollar declined against its Canadian counterpart on Wednesday, as sentiment on the greenback remained fragile ahead of the Federal Reserve’s monthly policy statement later in the day, while climbing oil prices boosted demand for the commodities of the Canadian currency.
USD/CAD was down 0.33% to 1.2251 by 09: 30 ET (13:30 GMT).
Later Wednesday, the U.S. central bank was widely expected to leave its interest rates, but it was also likely to announce plans to trim its $ 4.2 trillion in the portfolios of securities.
Markets were also jittery amid a rise in tensions between the UNITED states and North Korea continued to harden the statements of the AMERICAN President Donald Trump.
In his first speech before the United Nations General Assembly on Tuesday, Trump said, «the united States has great strength and patience, but if it is forced to defend itself and its allies, we have no choice, but to totally destroy North Korea.»
During this time, the Canadian dollar has benefited from a sustained rise in oil prices, as traders eyed the weekly report on U.S. inventories.
The loonie was lower against the euro, with EUR/CAD sliding 0.32% to 1.4696.