Investing.com - The U.S. dollar slid lower against its Canadian counterpart on Monday, as concerns over the pace of interest rate hikes in the U.S. continued to dampen demand for the greenback, although lower oil prices also weighed on the commodity-related Canadian currency.
USD/CAD was down 0.14% at 1.2694 by 09:30 a.m. ET (13:30 GMT).
Sentiment on the greenback remained vulnerable after last Wednesday’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.
The minutes echoed comments by Fed Chair Janet Yellen earlier in the week that she was uncertain about the inflation outlook.
While a rate hike in December is still almost fully priced in, investors pared back expectations for further rate hikes in 2018.
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.
Meanwhile, the Canadian dollar's gains were capped by declining oil prices on Monday, ahead of a highly-anticipated meeting of global oil producers scheduled on Thursday.
The loonie was steady against the euro, with EUR/CAD at 1.5167.