Canadian Dollar Declines As Oil Prices Fall

The Canadian dollar slipped against its major rivals in early New York deals on Monday, as oil prices fell on the back of strong dollar, which was underpinned by the Federal Reserve Chair Janet Yellen's comments that the bank is set to raise rates later this year.

Crude futures for July delivery fell $0.31 to $59.41 a barrel.

While speaking to a business group in Providence, Rhode Island on Friday, Yellen told that it is appropriate to raise rates later this year, if the economy continues to strengthen.

Baker Hughes reported on Friday that the number of rigs drilling for crude oil in the U.S. fell by only one to 659 last week, in a sign that U.S shale producers may accelerate oil production in the coming months.

Meanwhile, trading volumes were light, with U.S. markets and most of the European markets shut for public holidays.

The loonie has been weaker against its major rivals, except the euro, in the European session.

In early New York trading, the loonie edged down to 0.9633 against the aussie, off early high of 0.9598. Next key support for the loonie is seen around the 0.97 region. At last week's close, the pair was valued at 0.9608.

The loonie pared gains to 98.72 against the yen, after climbing to 99.03 in early European deals. If the loonie extends slide, it may challenge support around the 98.00 mark. At Friday's close, the pair was worth 98.88.

The loonie declined to 1.2307 against the greenback, and has been steady thereafter. The pair ended last week's trading at 1.2277. If the loonie continues slide, it may locate support around the 1.25 mark.

Reversing from an early nearly 2-week high of 1.3477 against the euro, the loonie slipped to 1.3517. On the downside, the loonie may locate support near the 1.36 area.