{"id":71998,"date":"2026-04-09T12:00:56","date_gmt":"2026-04-09T12:00:56","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2026\/04\/09\/posthaste-how-the-u-s-dollar-stole-the-canadian-dollars-petrocurrency-thunder\/"},"modified":"2026-04-09T12:00:56","modified_gmt":"2026-04-09T12:00:56","slug":"posthaste-how-the-u-s-dollar-stole-the-canadian-dollars-petrocurrency-thunder","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2026\/04\/09\/posthaste-how-the-u-s-dollar-stole-the-canadian-dollars-petrocurrency-thunder\/","title":{"rendered":"Posthaste: How the U.S. dollar stole the Canadian dollar&#039;s petrocurrency thunder"},"content":{"rendered":"<p> \n<br \/><img decoding=\"async\" alt=\"The Canadian dollar rose against its American counterpart while the price of oil fell Wednesday. \n\" data-has-syndication-rights=\"1\" data-license-id=\"4047458\" data-portal-copyright=\"Peter J. Thompson\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/04\/canadian-dollar-gs0408.jpg\" title=\"The Canadian dollar rose against its American counterpart while the price of oil fell Wednesday. \n\" \/><br \/>\n<iframe loading=\"lazy\" title=\"A Report Card On The Energy MOU Between Ottawa &amp; Alberta\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/JubIINpExRM?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><br \/>\n<\/iframe><br \/>\n<\/p>\n<p> The <\/p>\n<p>                        Canadian dollar<\/p>\n<p>                         has yielded its petrocurrency status to the <\/p>\n<p>                        United States dollar<\/p>\n<p>                         due to the latest global energy crisis, says one currency analyst. <\/p>\n<p> \u201cThe shale revolution turned the United States into the world\u2019s largest oil and natural gas producer, meaning energy price swings now feed more directly into American trade balances, capital flows and Fed policy expectations,\u201d Karl Schamotta, <\/p>\n<p>                        <span>chief market analyst at Corpay Currency Research, said in a note on Wednesday.<\/span> <\/p>\n<p> The change in relationship between the Canadian dollar and oil was on display Wednesday as it rose against its American counterpart while the price of oil fell. <\/p>\n<p> Prices for <\/p>\n<p>                        West Texas Intermediate<\/p>\n<p>                         \u2014 the North American crude oil benchmark \u2014 were down 16 per cent early Wednesday afternoon on the temporary ceasefire announced between the U.S. and <\/p>\n<p>                        Iran<\/p>\n<p>                        . <\/p>\n<p> \u201cThe Canadian dollar is climbing \u2026 <\/p>\n<p>                        <span>reflecting the fact that its long-standing role as a petrocurrency has eroded markedly in recent years,\u201d Schamotta said.<\/span> <\/p>\n<p> The <\/p>\n<p>                        loonie<\/p>\n<p>                         rose 0.3 per cent to a bit more than 72 cents U.S. after falling as much as two per cent between the start of the war on Feb. 28 and the beginning of April. <\/p>\n<p> \u201cWhile a Gulf truce will weigh on oil prices, the (Canadian dollar\u2019s) gearing to crude has been relatively weak in this episode,\u201d Shaun Osborne, chief currency strategist at the Bank of Nova Scotia, said in a note. <\/p>\n<p> Some of the Canadian dollar\u2019s small rebound on Wednesday was a result of investors pulling out of the greenback after flocking to the safety of the currency during the worst of the crisis. <\/p>\n<p> Schamotta also attributed the increase to a rise in \u201crisk appetite\u201d and an \u201cimprovement in borrowing costs\u201d as the yields on bonds, which help set interest rates, dropped. <\/p>\n<p> Between 2005 and 2015, the Canadian dollar moved in tandem with oil prices, which peaked as high as US$145 a barrel, leading to the currency breaking above US$1 on several occasions between late 2007 and 2013. <\/p>\n<p> But the Canadian economy has changed. <\/p>\n<p> \u201cThe breakdown (between the loonie and oil) reflects a structural transition in the Canadian economy as the debt and housing bubbles deflate, trade uncertainties weigh and prospects for renewed capital expenditure in the energy sector remain dim,\u201d Schamotta said. <\/p>\n<p> Reduced capital spending in the energy sector has directly hit the Canadian dollar, Charles St-Arnaud, chief economist at Servus Credit Union, said in a note on Wednesday. <\/p>\n<p> He said the energy sector since 2015 has been returning a larger portion of revenues to shareholders, three-quarters of whom are not Canadians, while reinvestment in domestic operations has fallen. That has resulted in less money flowing into the domestic economy to be converted into Canadian dollars. <\/p>\n<p> \u201cAs a result, the link between oil prices and the Canadian dollar has collapsed in recent years, with the correlation between the two being essentially zero,\u201d he said. <\/p>\n<p> The loonie was one of the weakest performers on Wednesday against the U.S. dollar among a group of 10 major currencies, rising 0.4 per cent while the Australian dollar rose 1.2 per cent and the Swedish krone jumped nearly two per cent as investors recalibrated their safe haven bets on the U.S. dollar, according to Bloomberg data. <\/p>\n<p> Sarah Ying, head of FX strategy at CIBC Capital Markets, said in a note that the Canadian dollar could face more downside in the near term and fall to around 71 cents U.S. if fighting in the Middle East were to restart. <\/p>\n<ul class=\"related_links\">\n<li>Posthaste: High cost of living has more Canadians using credit for essentials<\/li>\n<li>Posthaste: Why Canadians will feel the squeeze of soaring gas prices more than Americans<\/li>\n<\/ul>\n<hr \/>\n<p> <em><strong>\u00a0Sign up here to get Posthaste delivered straight to your inbox.<\/strong><\/em> <\/p>\n<hr \/>\n<p> <strong><br \/> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-1758646\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2019\/02\/subhead_leading.png\" width=\"838\" \/><\/strong> <\/p>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/04\/small-business-crime.png\" title=\"\" \/><\/p>\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div class=\"story-v2-content-element-inline\">\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div class=\"story-v2-content-element-inline\">\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div class=\"story-v2-content-element-inline\">\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div class=\"story-v2-content-element-inline\">\n<p>Many of Canada\u2019s small businesses are witnessing an increase in crime as the cost of living climbs.<\/p>\n<\/p><\/div>\n<\/section>\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div class=\"story-v2-content-element-inline\">\n<p>Only two per cent of small business owners say crime has declined in their community in the past year, compared to the 50 per cent who say it has increased, according to a new survey by the Canadian Federation of Independent Business (CFIB). \u2014<em> Ben Cousins, Financial Post<\/em><\/p>\n<p>Read the full story here.<\/p>\n<\/p><\/div>\n<\/section><\/div>\n<\/section><\/div>\n<\/section><\/div>\n<\/section>\n<section><\/section>\n<section class=\"story-v2-content-element article-content__content-group article-content__content-group--story\">\n<div class=\"story-v2-content-element-inline\">\n<hr \/><\/div>\n<\/section>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/07\/subhead-1.jpg\" title=\"\"><\/p>\n<ul>\n<li><strong>Today\u2019s data<\/strong>: U.S. personal income and spending, third update to fourth quarter GDP, core personal consumption expenditure index, initial and continuing jobless claims.<\/li>\n<li><strong>Earnings: <\/strong>Richelieu Hardware Ltd., Roots Corp., BlackBerry Ltd., Cogeco Communications Inc., Reitmans Canada Ltd.<\/li>\n<\/ul>\n<p>\n<img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-3080180\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_marketsam.jpeg\" width=\"838\" \/> <\/p>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/04\/chart-0409-ph.jpg\" title=\"\" \/><\/p>\n<figure class=\"embedded-image\"><\/figure>\n<hr \/>\n<p> <strong><img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-3080181\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_reads.jpeg\" width=\"838\" \/><\/strong> <\/p>\n<ul>\n<li>Homeowners are tightening their belts as mortgage renewals approach, TD survey finds<\/li>\n<li>Air Canada to launch customer complaint pilot project as backlog grows<\/li>\n<li>Competition Bureau steps up probe of proposed Keyera gas acquisition<\/li>\n<\/ul>\n<p> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-2059284\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2020\/04\/subhead_personal_finance_2.png\" width=\"838\" \/><br \/>\n<span><\/span> <\/p>\n<p> In the past month, two warnings concerning the use of artificial intelligence (AI) in the world of Canadian personal tax have been issued. The first, was a general warning to Canadian taxpayers courtesy of the Canada Revenue Agency, while the second was a reminder from a federal court judge about the use of AI by taxpayers when preparing their documents for court. Jamie Golombek explains more <\/p>\n<p>                        here<\/p>\n<p>                         about the dangers. <\/p>\n<p> <span><\/span><br \/>\n<img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/11\/FP-West-Energy-Insider-Logo.png\" title=\"\" \/><\/p>\n<p>                         Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country\u2019s most important sectors. <\/p>\n<p>                        Sign up here. <\/p>\n<hr \/>\n<div class=\"x_elementToProof\"><span>Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at\u00a0<\/span>wealth@postmedia.com<span><\/span><span>\u00a0with your contact info and the gist of your problem and we\u2019ll find some experts to help you out while writing a Family Finance story about it (we\u2019ll keep your name out of it, of course).<\/span><\/div>\n<hr \/>\n<h2>McLister on mortgages<\/h2>\n<p> Want to learn more about mortgages? Mortgage strategist Robert McLister\u2019s <\/p>\n<p>                        Financial Post column <\/p>\n<p>                        can help navigate the complex sector, from the latest trends to financing opportunities you won\u2019t want to miss. Plus check his <\/p>\n<p>                        mortgage rate page<\/p>\n<p>                         for Canada\u2019s lowest national mortgage rates, updated daily. <\/p>\n<hr \/>\n<h2>Financial Post on YouTube<\/h2>\n<p> Visit the Financial Post\u2019s <\/p>\n<p>                        YouTube channel<\/p>\n<p>                         for interviews with Canada\u2019s leading experts in business, economics, housing, the energy sector and more. <\/p>\n<hr \/>\n<p> <em>Today\u2019s Posthaste was written by Gigi Suhanic with additional reporting from Financial Post staff and Bloomberg.<\/em> <\/p>\n<p> Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at\u00a0<\/p>\n<p>                        posthaste@postmedia.com<\/p>\n<p>                        . <\/p>\n<hr \/>\n<p> <em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add\u00a0financialpost.com\u00a0to your bookmarks and sign up for our newsletters here<\/em> <\/p>\n<p><\/img><br \/>\n<br \/>\n<br \/>Posthaste: How the U.S. dollar stole the Canadian dollar&#039;s petrocurrency thunder<\/a><br \/>\n<br \/>2026-04-09 12:00:56<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Canadian dollar has yielded its petrocurrency status to the United States dollar due to the latest global energy crisis, says one currency analyst. \u201cThe shale revolution turned the United&#8230;<\/p>\n","protected":false},"author":2,"featured_media":71999,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-71998","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/71998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=71998"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/71998\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/71999"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=71998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=71998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=71998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}