The US dollar weakened slightly against its Canadian counterpart Tuesday afternoon as oil prices rose after the US and Iran made new demands in order for the Strait of Hormuz to reopen.
Al Jazeera reports that Pakistan's Interior Minister Mohsin Naqvi is in Tehran for talks with Iranian officials, in a bid to help end the stalemate.
The US dollar edged down 0.11% to C$1.3924 on last look.
West Texas Intermediate September futures climbed 1.5% to $83.32 per barrel, while Brent crude futures for October delivery advanced 1.2% to $88.78 per barrel.
US Gold futures for December edged up 0.45% to $4,439.60 per ounce.
The US Bureau of Labor Statistics' consumer price index data for July will be released on Wednesday.