The U.S. dollar dropped against its Canadian counterpart on Monday, as a rally in oil prices boosted demand for the commodity-related Canadian currency.

USD/CAD hit 1.3404 during early U.S. trade, the pair’s lowest since November 22; the pair subsequently consolidated at 1.3417, retreating 0.73%.

The pair was likely to find support at 1.3373, the low of November 22 and resistance at 1.3538, the session high.

The Canadian dollar strengthened as oil prices moved sharply higher on Monday, following reports Iraq plans to cooperate with other OPEC members to reach an agreement acceptable to all.

OPEC is to hold a meeting in Vienna on Wednesday. The producer cartel is attempting to get its 14 member states, along with non-OPEC member Russia, to implement coordinated production cuts aimed at reducing a global supply glut that has seen oil prices halve in two years.

Meanwhile, the greenback remained broadly supported amid ongoing expectations that increased fiscal spending and tax cuts under the Trump administration will spur economic growth and inflation.

The dollar has also been boosted by the view that a rate hike by the Federal Reserve in December is a near certainty.

The loonie was sharply higher against the euro, with EUR/CAD declining 0.90% to 1.4184.