Canadian Dollar Climbs as Oil Prices Surge

On Friday’s New York session, the Canadian dollar strengthened against major currencies, boosted by a jump in oil prices following renewed tensions in the Middle East.

After Israel initiated a new series of “pre-emptive” strikes against Iran – targeting its nuclear facility and military sites – Israel declared a state of emergency. In response, Iran fired over 100 drones toward Israeli territory, with reports that the Israel Defense Forces are actively intercepting them.

These aggressive moves have raised fears of a broader conflict, sending crude oil prices soaring amid concerns over potential supply disruptions.

Reacting on Truth Social, former President Donald Trump urged Iran to secure a nuclear deal before the situation worsens. “There has already been great death and destruction, but there is still time to stop this slaughter before even more brutal attacks occur,” he warned, adding, “Iran must make a deal, before there is nothing left. No more death, no more destruction—JUST DO IT, BEFORE IT IS TOO LATE.”

The Canadian dollar, commonly known as the loonie, reached an 8½-month high at 1.3566 against the US dollar and hit a two-day high of 1.5670 versus the euro. Analysts expect resistance around 1.31 against the greenback and 1.54 against the euro.

Meanwhile, the loonie climbed to a two-day high of 106.15 against the Japanese yen, rebounding from an eight-day low of 104.79, and may soon test resistance near the 108.00 level.

In contrast, the loonie fell to 0.8849 against the Australian dollar from a one-and-a-half-month high of 0.8804, with support expected around the 0.90 level.