Investing.com - The U.S. dollar fell to an eight-week low against its Canadian counterpart on Friday, as sharply higher oil prices lent support to the commodity-related Canadian currency, although demand for the greenback remained broadly supported.
USD/CAD hit 1.3161 during early U.S. trade, the pair’s lowest since October 20; the pair subsequently consolidated at 1.3182, slipping 0.08%.
The pair was likely to find support at 1.3106, the low of October 20 and resistance at 1.3252, Thursday’s high.
Oil prices rallied on Friday as oil producers were set to meet in Vienna on Saturday to see if non-OPEC countries will agree to cut production in a move to reduce a global supply glut.
However doubts remained over whether OPEC’s planned output cut will be enough to reduce the global supply glut.
Meanwhile, the greenback remained supported ahead of the Federal Reserve’s policy meeting next week, amid sustained expectations for a rate hike.
The U.S. dollar was also boosted after the U.S. Labor Department said on Thursday that initial jobless claims fell by 10,000 to 258,000 in the week ending December 2, in line with expectations.
The loonie was also higher against the euro, with EUR/CAD declining 0.51% to 1.3929.
The euro remained under pressure after the European Central Bank said at its monthly policy meeting on Thursday that it would extend its asset purchase program for an additional nine months.