The Canadian dollar has dropped to its lowest level against the US dollar in almost a year due to falling oil and other commodity prices.

The Canadian dollar slipped 1.3 US cents to 96.02 US cents in Tuesday morning trading, as oil plummeted as low as US$118 a barrel. The price of oil Tuesday is about 19 per cent below oil's all-time high above US$147 reached July 11.

The recent strengthening of the battered US greenback has also contributed to the Canadian dollar's decline, along with the expectation that the U Federal Reserve will hold interest rates steady at its meeting Tuesday.

The last time the Canadian dollar was at the 96-US-cent level was last September.