The Canadian dollar extended rise against its major rivals in New York deals on Monday, as oil prices advanced on ongoing conflict in Yemen, as well as due to continued decline in U.S. rig counts.
Crude for June delivery rose $0.21 to $57.36 per barrel.
Saudi Arabia’s coalition forces continued bombing inside Yemen, with a series of air strikes reported around the rebel-held capital, presidential palace and several other provinces. Taiz, Yemen’s third-largest city, witnessed severe clashes on Monday, killing around 20 civilians.
The total number of U.S. rigs actively drilling for oil fell by 31 to 703 in the latest week, the lowest level since October 2010, data from Baker Hughes showed on Friday. The data is seen as an indication that U.S. crude production may be slowing, eroding fears of supply glut.
Traders await a 2-day meeting of the U.S. Federal Reserve this week, at which no change in monetary policy stance is expected. The accompanying statement will be closely watched for more clues about timing of the Fed’s interest rate hike.
The loonie edged up to 98.58 against the yen and 1.2107 against the greenback, off early multi-day lows of 97.46 and 1.2194, respectively. The loonie may possibly find resistance around 99.00 against the yen and 1.20 against the greenback.
The loonie was trading higher at 0.9475 against the aussie, off early 5-day low of 0.9539. The loonie is likely to find resistance around the 0.93 zone. The pair closed last week’s deals at 0.9524.
Reversing from an early low of 1.3241 against the euro, the loonie advanced to 1.3149. If the loonie continues rise, 1.30 is likely as its next resistance level. The euro-loonie pair was valued at 1.3239 when it closed Friday’s deals.
The material has been provided by InstaForex Company – www.instaforex.com