Canadian Dollar Strengthens As Oil Rallies On Middle East Conflict

The Canadian dollar firmed against its most major counterparts in the New York session on Tuesday, as oil prices climbed amid fears of an imminent attack by Iran against Israel.

Crude for November delivery rose $2.79 to 70.92 per barrel.

Middle East tensions intensified after the U.S. warned that it "has indications that Iran is preparing to imminently launch a ballistic missile attack against Israel."

The U.S. said that it is prepared to defend Israel against this attack.

Tensions escalated after the killing of Hezbollah leader Hassan Nasrallah last week.

A wider war in the Middle East could disrupt oil exports from the region and lift prices.

The loonie climbed to a 4-day high of 0.9281 against the aussie and a 4-week high of 1.4929 against the euro, off its early lows of 0.9377 and 1.5072, respectively. The currency is seen finding resistance around 0.90 against the aussie and 1.47 against the euro.

The loonie advanced to a 4-day high of 1.3488 against the greenback, from an early 8-day low of 1.3539. The currency is likely to locate resistance around the 1.32 level.

In contrast, the loonie fell to 105.84 against the yen, reversing from an early 4-day high of 106.89. The currency may challenge support around the 104.00 level.