Canadian Dollar Recovers as Oil Prices Rally

The Canadian dollar rose to C$1.4245 per U.S. dollar on Thursday, recovering from an 18-month low of C$1.4293 hit on Monday. This recovery followed a rally in oil prices and a narrowing yield gap between Canadian and U.S. government bonds.

Brent crude briefly climbed above $100 a barrel amid supply concerns in the Middle East. These gains moderated after Donald Trump stated the United States would not attack Iran before the November midterm elections.

Market participants are now monitoring the Federal Reserve System's interest rate expectations and inflation concerns. Investors are also awaiting Canada's September employment report to gauge future policy moves by the Bank of Canada.