Investing.com - The U.S. dollar dropped to more than three-week lows against its Canadian counterpart on Monday, as comments by Federal Reserve Chair Janet Yellen at Jackson Hole weighed heavily on the greenback.
USD/CAD was down 0.22% at 1.2453, the lowest since July 31, by 09:30 a.m. ET (13:30 GMT),
The greenback weakened broadly after a speech by Fed Chair Yellen at the Jackson Hole economic symposium made no reference to monetary policy, disappointing some investors who had hoped she would adopt a hawkish tone.
The dollar has been under strong selling pressure this year amid ongoing uncertainty over the economic agenda of U.S. President Donald Trump and doubts that the Fed will deliver a third rate hike this year.
But the commodity-related Canadian dollar's gains were expected to remain limited as oil prices turned lower after Hurricane Harvey hit Texas over the weekend.
The loonie was higher against the euro, with EUR/CAD slipping 0.17% to 1.4856.
The single currency remained supported however, after European Central Bank President Mario Draghi at Jackson Hole avoided giving any new indication as to when the bank might wind down its stimulus program, but acknowledged that the recovery in the euro area is gaining momentum.