US Dollar Firms Up Against The Canadian Dollar as Middle East Hostilities Resume, Bond Yields Rise

01:51 PM EDT, 09/01/2026 (MT Newswires) -- The US dollar strengthened against the loonie Tuesday afternoon as Middle East hostilities resumed and the United States announced new attacks against Iranian targets, causing oil prices to spike. US Treasury yields are also higher today. The greenback was up 0.4% to C$1.3905 on last look. West Texas Intermediate October crude oil futures, the US benchmark, jumped 4.5% to $89.60 per barrel. November Brent oil futures, the international benchmark, rose 4% to $94.04 per barrel. Comex December gold futures slipped 2% to $4,394.80 per ounce, as expectations increase that the US Federal Reserve will raise interest rates, and bond yields rise. According to the CME FedWatch Tool, there is a 68.3% probability the Fed's policy committee will raise rates by 25 basis points at its next meeting beginning Sept.16.