Canadian Dollar Hits Highest Since July

2025-12-23 18:07 By Felipe Alarcon 1 min. read

The Canadian dollar strengthened past 1.37 per US dollar, its highest level since July, as investors digested fresh domestic data alongside renewed US dollar weakness.

Statistics Canada’s flash GDP estimate pointed to a 0.1% monthly expansion in November, a modest rebound after October’s sharp contraction that eased near-term growth concerns and trimmed the urgency for policy easing.

The Bank of Canada’s decision to hold the overnight rate at 2.25% and emphasize a data-dependent pause rather than further cuts has kept short-term policy settings relatively tight, supporting Canadian yields and the currency.

While domestic activity remains uneven, recent indicators suggest some stabilization, reinforcing the case for patience from the Central Bank.

At the same time, the US dollar has softened as markets price Fed rate cuts next year amid cooling labour and inflation dynamics, removing a key source of pressure on the loonie.



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