The US dollar weakened against the loonie Wednesday afternoon as oil prices extended losses after Iran announced it reached an agreement with Oman on a route for shipping through the Strait of Hormuz, according to reports by Bloomberg and The Guardian.
A formal Iran-Oman agreement was reportedly still being drafted.
The latest development came after Qatar on Tuesday confirmed reports that a draft agreement to reopen the Strait of Hormuz was being circulated among parties, and US President Donald Trump expressed hopes that a breakthrough could be reached sometime this week.
The US dollar edged down 0.4% to C$1.4008 on last look.
West Texas Intermediate September futures fell 0.95% to $75.07 per barrel, while US gold futures for December climbed 3.9% to $4,317.40 per ounce.