The commodity-related currencies like CAD, AUD, and NZD strengthened against their rivals in the European session on Monday, as oil prices traded above the $120 a barrel mark, as investors priced in impacts of a potential ban on oil imports from Russia by the U.S. and EU in a response to its invasion of Ukraine.
Secretary of State Antony Blinken confirmed on Sunday that the U.S. is conducting active talks with its key allies and partners on banning crude imports of Russian oil, raising concerns about the global oil supply.
Investors fear that surging oil prices, compounded with rising food and other commodity prices, will drive global inflation even higher.