The U.S. dollar slid lower against its Canadian counterpart on today, approaching a more than two-year trough as concerns over tensions with North Korea persisted and as climbing oil prices lent support to the commodity-related Canadian currency.
Investors remained cautious after North Korea conducted its sixth and largest ever nuclear test on Sunday, prompting U.S. Defence Secretary James Mattis to say that any threat to the U.S. or its allies would be met with a “massive military response”.
On Monday, South Korea said that its northern neighbour had been observed moving what appeared to be an intercontinental ballistic missile towards its west coast.
Meantime, the United Nations was said to be considering tougher economic sanctions against North Korea.
Meantime, oil prices moved sharply higher on Tuesday, as U.S. refineries began to resume operations, boosting demand for the commodity-linked Canadian dollar.
The loonie was higher against the euro, with EURCAD declining to 1.4722.