When oil prices fall, the loonie typically follows suit, especially against the greenback as oil prices are denominated in U.S. dollars. The Canadian dollar is also influenced by the Bank of Canada. Sometimes larger macroeconomics trends can affect the loonie — an unanticipated rise in employment, for example — typically means a rise in the Canadian dollar. Many market watchers had also been predicting a pullback after the market's relentless march higher over the past year. "This is very positive for the Canadian dollar.

Source: CBC News February 12, 2018 17:31 UTC