Investing.com - The Canadian dollar rose to fresh four-week highs against its broadly weaker U.S. counterpart on Tuesday, boosted by higher prices for oil and robust domestic data.
USD/CAD was down 0.3% to 1.3462 by 09.30 ET, its lowest trough since April 24.
The price of oil, a major Canadian export pushed higher amid hopes that major producers will extend supply cuts for a prolonged period later this week, amid efforts to reduce a global supply glut.
The loonie received an additional boost after data showing that the value of Canadian wholesale trade grew by 0.9% in March, hitting a record high.
The increase was mainly due to increased demand for building materials and supplies, Statistics Canada said.
The greenback was struggling near six-month lows against a currency basket as expectations for fiscal stimulus under the Trump administration faded amid political turmoil in Washington.
Recent weeks have seen a steady stream of revelations surrounding the FBI’s investigation into alleged Russian interference in November’s presidential election and reports that President Donald Trump attempted to interfere with the judicial process.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 96.83, not far from Monday’s six-month trough of 96.83.
The index has given up all the gains it had made following the presidential election in November amid fears that the U.S. political system could become engulfed by crisis, preventing lawmakers from pushing through tax or spending reforms.
Investors were looking ahead to Trump’s budget proposal, due to be presented to Congress later Tuesday following reports that it includes cuts to Medicaid and changes to other assistance programs for low-income citizens.