Canada: Dollar Weakens to 2-Month Low.

The Canadian dollar weakened past 1.38 per US dollar to hit a two-month low as persistent geopolitical friction and hawkish Federal Reserve expectations bolstered the greenback. Although West Texas Intermediate crude oil prices rose beyond $92.00 amid the effective closure of the Strait of Hormuz the commodity-linked Loonie struggled to gain traction against a broadly firmer US dollar. Market skepticism regarding a Middle East de-escalation intensified after Iran rejected a 15-point US peace proposal and dismissed claims of ongoing negotiations while the US deployed additional troops to the region. These developments have fueled inflationary concerns and led traders to price out further Federal Reserve rate cuts with increasing bets on a potential hike by year-end. Rising US Treasury yields and the greenback's status as a global reserve currency continue to pressure the loonie.