Canadian dollar strengthens as oil recovers from conflict in the Middle East

CANBERA (dpa-AFX) – The Canadian dollar firmed against its major counterparts during Tuesday’s New York session as oil prices rose on fears of an impending attack by Iran on Israel.

Crude oil deliveries for November rose $2.79 to 70.92 per barrel.

Tensions rose in the Middle East after the US warned it has “indications that Iran is preparing to launch an early ballistic missile attack on Israel.”

The US said it was prepared to defend Israel against this attack.

Tensions escalated after the assassination of Hezbollah leader Hassan Nasrallah last week.

A broader war in the Middle East could disrupt the region’s oil exports and raise prices.

The loonie climbed to a four-day high of 0.9281 against the Australian and a four-week high of 1.4929 against the euro, off early lows of 0.9377 and 1.5072 respectively. The currency is seen facing resistance around 0.90 against the Australian and 1.47 against the Euro.

The loonie advanced to a four-day high of 1.3488 against the dollar, from an early eight-day low of 1.3539. The currency is likely to locate resistance around the 1.32 level.

In contrast, the loonie fell to 105.84 against the yen, a reversal from an early four-day high of 106.89. The currency could challenge support around the 104.00 level.

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