Investing.com - The U.S. dollar trimmed losses but remained close to a one-week trough against its Canadian counterpart on Wednesday, amid ongoing uncertainties surrounding the U.S. administration, while a decline in oil prices was expected to limit the Canadian currency’s gains.
USD/CAD hit 1.3089 during early U.S. trade, the pair’s lowest since January 18; the pair subsequently consolidated at 1.3120, declining 0.30%.
The pair was likely to find support at 1.3037, the low of January 18 and resistance at 1.3191, the high of January 17.
The greenback weakened after U.S. President Donald Trump said on Twitter that he would seek a "major investigation" into alleged voter fraud, focusing on two states and illegal voters.
The call came despite Republican election officials in key states saying they have found no evidence of fraudulent voting.
On Tuesday, the National Association of Secretaries of State said it had confidence in the "systemic integrity of our election process" and was not aware of any evidence related to Trump's claims.
The dollar has been under pressure since Trump’s inauguration last Friday amid concerns over a lack of clarity on his economic policies and fears that his protectionist trade stance could hit corporate profits and act as a drag on growth.
But the commodity-related Canadian dollar was also under pressure as oil prices moved lower ahead of the weekly report on U.S. stockpiles.
The loonie was higher against the euro, with EUR/CAD shedding 0.38% to 1.4065.