Investing.com - The U.S. dollar was hovering near a four-week high against its Canadian counterpart on Monday, as expectations for a U.S. rate hike and tax overhaul before the end of the year continued to support the greenback, while declining oil prices weighed on the Canadian currency.
USD/CAD was up 0.29% at 1.2502 by 9:30 a.m. ET (13:30 GMT).
The U.S. dollar remained supported after Federal Reserve Chair Janet Yellen indicated last week that the central bank was sticking to plans for a third rate hike this year.
The greenback received an additional boost from fresh hopes for U.S. tax reform after the Trump administration outlined plans for a sweeping overhaul of the U.S. tax code last Wednesday.
Meanwhile, the commodity-related Canadian dollar was affecter by retreating oil prices on Monday, as recent optimism over an apparent re-balancing of the market seemed to subside.
The loonie was higher against the euro, with EUR/CAD shedding 0.22% to 1.4698.