The Canadian Dollar gained ground against most major currencies on Monday, driven by a surge in oil prices. This move comes amid renewed tensions in the Middle East, which have raised concerns over potential supply disruptions in the Strait of Hormuz.
According to FX Street, the escalation in Middle Eastern conflicts has pushed oil prices higher, benefiting commodity-linked currencies like the Canadian Dollar. The Strait of Hormuz remains a critical chokepoint for global oil shipments, and any threat to its stability typically increases market volatility.
For Japanese investors, the Canadian Dollar’s gains highlight the sensitivity of commodity currencies to geopolitical risks, an important factor when managing exposure in FX and equities linked to global energy trends.