TD Securities: If the Iran war lasts longer, the Canadian dollar may benefit

Strategists at TD Securities pointed out in a report that if the duration of the Iran war exceeds expectations, the Canadian dollar is likely to strengthen against currencies other than the US dollar. The Canadian dollar is less sensitive to risk aversion compared to some other currencies, and as Canada is an oil-exporting country, the Canadian dollar will benefit from higher oil prices triggered by the conflict. These strategists also stated that the slowdown in economic growth in other regions of the world caused by a prolonged conflict would have a relatively small impact on the Canadian dollar. However, they also mentioned that if risk aversion further intensifies, the Canadian dollar will depreciate against the US dollar.