Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Tuesday, despite sustained pressure on the greenback, as declining oil prices dampened demand for the commodity-related Canadian currency.
USD/CAD was up 0.17% at 1.2693 by 09:30 a.m. ET (13:30 GMT), the highest since November 21.
Sentiment on the greenback remained vulnerable after last week's minutes of the Federal Reserve’s November meeting showed that some officials were concerned inflation would stay below the bank's 2% target for longer than expected.
Investors were also eyeing a confirmation hearing on Tuesday for Fed chair nominee Jerome Powell, with hopes he may give some clues on future policy decisions.
In remarks prepared for the hearing released on Monday, Powell said: "We expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink".
Market participants also continued to focus on a potential U.S. tax reform plan. President Donald Trump was set to meet Senate Republicans on Tuesday to discuss the party's efforts to pass tax reform legislation.
But the Canadian dollar failed to gain any traction, as oil prices moved lower for a second consecutive day, weighed by growing anticipation ahead of a meeting of global oil producers on Thursday.
The loonie was also lower against the euro, with EUR/CAD up 0.09% at 1.5204.