Investing.com - The Canadian dollar fell to fresh five-week lows against the U.S. dollar on Wednesday as continued weakness in oil prices pressured the risk-sensitive commodity-linked currency lower.
USD/CAD hit highs of 1.3209, the most since July 27 and was last at 1.3198.
Oil prices remained under pressure amid expectations that a global oil glut is likely to persist well into next year.
On Tuesday, the International Energy Agency downgraded its oil demand forecast a day after the Organization of the Petroleum Exporting Countries warned that the oil market will remain oversupplied this year and next.
The loonie showed little reaction after data showing that Canadian home prices rose in August, led by gains in Vancouver and Toronto.
Prices rose 1.5% in August, according to the Teranet-National Bank Composite House Price Index, and were up 11.4% from a year earlier.
The index measures price changes for repeat sales of single-family homes.
The greenback was steady against the other major currencies as uncertainty over the timing of the next Federal Reserve rate hike continued.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies was at 95.56.
Fed Governor Lael Brainard said on Monday that the case to tighten monetary policy in the coming months is less compelling.
The comments dampened expectations for a rate hike at the Fed’s next meeting which is scheduled for September 20-21.
Expectations of higher interest rates typically boost the dollar by making it more attractive to yield seeking investors.