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2026.03.2318:09:19UTC+00Canadian Dollar Steady Near 2-Month Lows

The Canadian dollar steadied around 1.37 per USD, trading close to a two‑month low as a diplomatic turn in the Middle East reduced safe‑haven demand for the US dollar and cooled the global rally in energy prices. President Trump’s decision to delay military strikes on Iranian infrastructure by five days triggered a sharp drop in energy prices and unwound much of the geopolitical premium previously supporting the Loonie.

Although both the Bank of Canada and the Federal Reserve maintained a cautious stance on inflation, the Canadian dollar found technical support as demand for the greenback weakened following disappointing US construction and manufacturing data. This softening in US Dollar demand helped offset the loss of oil‑related support, particularly as Federal Reserve officials played down the need for imminent rate hikes, even in the face of stagflation risks highlighted by Chicago Fed President Austan Goolsbee.

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