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US Dollar Continues to Weaken Against The Loonie as Oil, Gold Prices Edge Up

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The US dollar was weaker against the Canadian dollar Friday afternoon as oil and gold prices continued their upward climb.

The US dollar was down 0.2% to C$1.3759, on last look.

West Texas Intermediate October crude oil futures, the US benchmark, climbed 0.6% to $87.32 per barrel. October Brent oil futures, the international benchmark, rose 1% to $94.66 a barrel.

The increase was despite several news outlets reporting Friday that Iranian President Masoud Pezeshkian said Iran should end the war while it was in a position of strength.

Meanwhile, comex gold December futures jumped 2.4% to $4,682.80, the highest level since the middle of May.

BMO Chief US Economist Scott Anderson, in a note published Friday, said Treasury Secretary Scott Bessent's announcement of a doubling of bond buybacks to $4 billion per operation from Sept. 9 is "correctly" being judged by investors as a "band-aid solution to a financing problem".

"Despite Bessent's threat to ramp up buybacks further on Thursday, the move mostly glosses over the fundamental problem of too much debt and could complicate the Fed's efforts to rein in inflation," Anderson wrote.

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