Investing.com - The U.S. dollar climbed to fresh 11-1/2 year highs against its Canadian counterpart on Tuesday, as expectations for an upcoming U.S. rate hike continued to support the greenback and declining oil prices weighed on the Canadian currency.
USD/CAD hit 1.3605 during early U.S. trade, the pair's highest since June 2004; the pair subsequently consolidated at 1.3585, climbing 0.63%.
The pair was likely to find support at 1.3361, Monday's low and resistance at 1.3812.
The greenback remained broadly supported after Friday's strong U.S. employment data fuelled further expectations that the Federal Reserve will hike interest rates for the first time since 2006 at its upcoming meeting on December 15-16.
In Canada, data showed that building permits increased by 9.1% in October, blowing past expectations for a 3.2% gain, after a revised decline of 6.6% the previous month.
Data also showed that Canada's housing starts increased by 211,900 in October, compared to expectations for a 198,700 rise.
But the commodity-linked Canadian dollar continued to be pressured lower but declining oil prices. Crude oil futures for January delivery were down 1.86% at $36.98, the lowest level since 2009.
The loonie was also lower against the euro, with EUR/CAD jumping 1.15% to 1.4793.