The earlier dip in Canadian Dollar can be attributed to escalating tension between Saudi Arabia and Canada after the latter criticized the arrest of a female activist.
The Financial Times reported that Saudi central bank and state pensions ordered their overseas asset managers to sell their Canadian assets, including equities, bonds and cash holdings “no matter the cost”.
Earlier this week, Saudi Arabia froze new trade and investment with Canada. Also, it expelled the Canadian ambassador.
Further Saudi said it had stopped all medical treatment programs in Canada and was working on transferring all Saudi patents out of there.
Saudi Arabia’s foreign minister also said there is “nothing to mediate” with Canada.
