The U.S. dollar moved higher against Canadian dollar on Today, as declining oil prices weighed on the commodity-related Canadian currency, although warning ahead of this week’s U.S. inflation data was expected to limit the greenback’s gains.
The Canadian dollar was undermined by a further drop in oil prices, after they briefly rebounded earlier Today.
In the U.S., investors were keeping an eye this week’s consumer price inflation data due on Wednesday and producer price inflation data on Thursday for further clues on how fast the Federal Reserve will raise interest rates this year.
Monday’s recovery for global stock markets also weighed on the greenback. U.S. equities were especially boosted by news of a $2 billion infrastructure plan by the Trump administration.
The plan is part of the two-year budget agreement passed by the U.S. Congress last Friday, ending a brief government shutdown.
The agreement is set to boost federal spending by almost $300 billion and suspend the debt ceiling for a year.
The loonie was lower against the euro, with EURCAD climbing to 1.5595 at 15:00 GMT.