Canadian Dollar Hits 14-Month Lows on Fed Hikes, Lower Oil

The Canadian Dollar (CAD) is trading near its worst levels in over a year on Thursday, consolidating losses as the US Dollar (USD) stays buoyant. Traders are pricing in a higher likelihood that the Federal Reserve will continue to tighten monetary policy, supporting the greenback.

Additional pressure on the loonie comes from declining crude oil prices. As a commodity-linked currency, the CAD is particularly sensitive to moves in the energy market. The combination of a hawkish Fed outlook and lower oil is weighing heavily on the Canadian currency.