The Canadian dollar hovered near the 1.38 per USD level, close to the one-year low of 1.39 hit on November 1, as a more hawkish Fed forecast continued to put pressure on the madman.

Fed officials stressed that it was premature to declare victory over inflation and expressed willingness to raise interest rates if necessary.

While oil prices recovered slightly, limiting the Canadian currency's decline,

 they were still on track for a third straight weekly decline, contributing to the Canadian dollar's weakness.

Lingering concerns about global demand for the commodity continued as the Chinese economy pointed to weaker demand from the world's largest crude consumer.