The U.S. dollar fell to one-month lows against its Canadian counterpart on Tuesday, as comments by Federal Reserve Chair Janet Yellen weighed on the greenback, while higher oil prices boosted demand for the commodity-related Canadian currency.
Yellen indicated on Monday that the U.S. central bank won’t be raising interest rates until uncertainty over the economic outlook is resolved.
Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.
The remarks came after data on Friday showing that the U.S. economy added just 38,000 jobs last month, the smallest increase since September 2010.
The disappointing data ruled out chances for a June rate hike and prompted investors to push back expectations on the timing of the next rate hike until later this year.
Meanwhile, the Canadian dollar strengthened as oil prices continued to climb on Tuesday, helped by supply disruptions in Nigeria.