The dollar soared against oil-linked currencies on Tuesday, touching an 11-year high against the Canadian dollar and a 13-year high versus the Norwegian crown as concerns of excess supply and soft demand sent crude prices to near seven-year lows.
Falling oil and weak metal prices underpinned bets central banks of export-reliant economies would embark on more stimulus to weaken their currencies in a bid to help exporters.
"It's a perfect storm for commodity currencies," said Mazen Issa, senior currency strategist at TD Securities in New York.
The dollar touched C$1.3623, the strongest level against its Canadian counterpart since mid-2004. It rose 1.5 percent versus the Norwegian crown, touching 8.8194 crowns, its highest since April 2002.