TD Securities: If the Iran war continues for a longer period of time, the Canadian dollar may benefit.

The strategist at TD Securities stated in a report that if the duration of the Iran war exceeds expectations, currencies other than the Canadian dollar against the US dollar may strengthen. The Canadian dollar is less sensitive to risk aversion than some other currencies, and as Canada is an oil exporting country, the Canadian dollar will benefit from the high oil prices caused by the conflict. These strategists state that the impact of the conflict prolonging on the Canadian dollar is relatively small compared to the economic slowdown in other regions of the world. However, they stated that if risk aversion sentiment further intensifies, the Canadian dollar against the US dollar will decline.