The U.S. dollar was almost unchanged against its Canadian counterpart on Wednesday, as growing expectations for U.S. rate hike before the end of the year continued to boost the greenback, while a decline in oil prices weighed on the Canadian currency.
Market participants were waiting for the minutes of the Fed’s September policy meeting for hints on the central bank’s future policy moves.
Demand for the U.S. dollar still remained broadly supported, as the odds for a December rate hike passed the 70% threshold on Tuesday.
The commodity-related Canadian dollar came under pressure as oil prices turned lower ahead of a fresh round of talks between OPEC producers and other oil exporters to stabilize the global oil market.
OPEC was set to hold talks with non-member oil producers on Wednesday to try to discuss the details of an agreement to cap production for at least six months as Russia lent its support for the plan.
Russian President Vladimir Putin said on Monday that his country was prepared to join an oil-output deal which may include a production freeze or cut.