The US dollar inched higher against its Canadian counterpart on Thursday afternoon as oil prices and US 10-year Treasury bond yields continued to rise, adding to inflationary pressures.
US 10-year bond yields were up 4.936%, despite the US Treasury Department's Wednesday announcement that it would raise its bond buybacks to up to $6 billion for an operation beginning today.
The greenback edged up 0.2% to CA$1.3823 on last look.
With Middle East hostilities escalating and spreading to Yemen and Saudi Arabia, oil prices soared above the $100-per-barrel mark to reach the highest levels since May.
West Texas Intermediate October crude oil futures, the US benchmark, jumped 6.2% to $101.98 per barrel. November Brent oil futures, the international benchmark, climbed 6% to $107.29 per barrel.
Comex gold December futures fell 1.4% to $4,400.30 per ounce.