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USD/CAD Slumps on Weak U.S. Data, Rising Oil Prices

Greenback loses ground vs. loonie in early trade

Investing.com - The U.S. dollar slid lower against its Canadian counterpart on Wednesday, hovering close to a recent 28-month trough after the release of disappointing U.S. data and as higher oil prices lent support to the commodity-related Canadian currency.

USD/CAD was down 0.16% at 1.2167 by 09:30 a.m. ET (13:30 GMT), still within close distance of Friday's 28-month low of 1.2059.

The greenback came under pressure after data on Wednesday showed that U.S. producer price inflation and its core reading increased less than expected in August.

Sentiment on the U.S. dollar was also fragile as tensions with North Korea had not completely vanished from the geopolitical scene.

The Security Council voted unanimously on Monday to step up sanctions on the North Korea, in response to its sixth nuclear test.

However, U.S. President Donald Trump said Tuesday that the U.N. sanctions were a "very small step" and "nothing compared to ultimately what will have to happen" to combat the regime's nuclear program.

Meanwhile, the Canadian dollar was supported by a sustained rise in oil prices as Hurricane Irma appeared to have caused less damage than initially feared.

Irma, which had hammered the Caribbean late last week andwas one of the most powerful Atlantic hurricanes, weakened to a tropical depression, easing concerns over the severity of its financial impact.

The loonie was higher against the euro, with EUR/CAD shedding 0.26% to 1.4545.

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