Investing.com - The U.S. dollar fell to one-week lows against its Canadian counterpart on Monday, as sentiment on the greenback remained vulnerable due to the Federal Reserve’s persistantly cautious stance on rate hikes and as a rebound in oil prices boosted demand for the Canadian currency.
USD/CAD hit 1.2967 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2943, shedding 0.27%.
The pair was likely to find support at 1.2853, the low of March 31 and a five-month low and resistance at 1.3143, Friday’s high.
The greenback remained under pressure on the view that the Fed will stick to a cautious approach on hiking interest rates this year amid concerns over the outlook for the global economy.
Lower interest rates make the dollar less attractive to yield seeking investors.
Meanwhile, the commodity-related Canadian dollar found support as oil prices rebounded from session lows hit after analysts earlier warned that a planned meeting of major oil producers in Doha later this month would have only a limited effect on curbing global overproduction.
The loonie was steady against the euro, with EUR/CAD sliding 0.34% to 1.4755.