Canadian Dollar Higher As U.S. Set To Tighten Iran Sanctions

The Canadian dollar climbed against its major counterparts in the Asian session on Monday, as oil prices rallied following a media report that Washington is set to announce an end to sanction waivers on Iranian crude imports today.

Crude oil prices jumped almost 3 percent after the Washington Post reported that the U.S. is preparing to announce on Monday that all importers of Iranian oil will have to end their purchases shortly or face U.S. sanctions.

Crude for June delivery rose $1.41 to $65.47 per barrel.

Ending sanctions exemptions to Iranian oil buyers would further tighten oil market.

Asian stock markets were mostly higher despite the absence of fresh cues from Wall Street and European markets, which were closed for the Good Friday holiday. The markets in Australia, New Zealand and Hong Kong remained closed for the Easter Monday holiday.

The loonie appreciated to a 4-day high of 83.81 against the yen, from a 6-day low of 83.51 touched at 5:30 pm ET. Next key resistance for the loonie is likely seen around the 85.00 level.

The loonie, having fallen to 1.3391 against the greenback at 5:45 pm ET, reversed direction and climbed to a 4-day high of 1.3358. The loonie is poised to find resistance around the 1.32 level.

The Canadian currency advanced to a session's high of 1.5013 against the euro, following a decline to 1.5058 at 5:30 pm ET. The loonie is likely to challenge resistance around the 1.49 level, if it rises further.

The loonie spiked up to a 10-day high of 0.9534 against the aussie, after falling to a session's low of 0.9577 at 5:00 pm ET. The loonie is seen finding resistance around the 0.94 level.

Looking ahead, U.S. existing home sales for March are due at 10:00 am ET.