TORONTO _ The Canadian dollar declined Tuesday morning as the U.S. dollar gained against other currencies amid geopolitical worries and falling German investor confidence.
The loonie was down 0.23 of a cent to 91.35 cents US.
The tone on markets was cautious Tuesday as Ukraine said it would deny a Russian aid mission entry because it has not been certified by the Red Cross and could be a covert military operation.
The International Committee of the Red Cross said it had no information on what the 280 trucks were carrying or where they were going. There are concerns that Russia could use the initiative as a pretext for sending troops into separatist-held territory.
Also, Germany's ZEW indicator of confidence among professional investment analysts sagged to a 20-month low in August. The ZEW institute's index fell to 8.6 from 27.1. Market observers had expected a fall to only 17.0.
Fears about a possible escalation of the crisis in Ukraine have weighed on Germany business confidence in recent weeks.
On the commodity markets, the September crude contract in New York declined 80 cents to US$97.28 a barrel.
December bullion gained $2.70 to US$1,313.20 an ounce while September copper gained a cent to US$3.18 a pound.
As well as monitoring the situation in Ukraine, investors are keeping one eye on Iraq.
Iraq's incumbent Prime Minister Nouri al-Maliki appeared more isolated Tuesday as he pressed his battle to remain in power while Iraqi politicians and the international community rallied behind a Shiite premier-designate who could be a more unifying figure.
The power struggle in Baghdad comes as Iraq is battling militants from the al-Qaida breakaway group in the north and the west. The onslaught by the Islamic State has captured large chunks of Iraqi territory since June.