Investing.com - The U.S. dollar was almost unchanged near more than four-week highs against its Canadian counterpart on Tuesday, as demand for the greenback remained broadly supported by hopes for a December rate hike by the Federal Reserve and a U.S. tax reform plan before the end of the year.
USD/CAD was up 0.10% at 1.2521 by 9:30 a.m. ET (13:30 GMT), just off a more than four-week peak of 1.2538 hit overnight.
The greenback remained supported after upbeat U.S. manufacturing data seemed to boost chances for a December rate hike by the Federal Reserve.
The Institute of Supply Management reported on Monday that its index of manufacturing activity climbed to a 13-month high of 60.8 in September from 58.8 the previous month.
The U.S. dollar has also been supported in recent session by growing hopes for U.S. tax reform after the Trump administration outlined plans for a sweeping overhaul of the U.S. tax code last week.
Meanwhile, a decline in oil prices also weighed on the commodity-related Canadian dollar, as traders began to focus on the week's U.S. crude stockpiles data.
The loonie was lower against the euro, with EUR/CAD adding 0.27% to 1.4716.
The single currency mildly recovered from losses posted after Catalans voted for independence in a contested referendum on Sunday that ended in violence when police cracked down on polling booths, injuring hundreds of people.
Despite Spanish police measures to disrupt the referendum, which was declared unconstitutional by Madrid, the Catalan government said that 90% of the people voted in favour of breaking away, with a turnout of about 42%.