Canadian Dollar Hits 7-week High

2026-05-01 12:14 By Anna 1 min. read

The Canadian Dollar touched 1.36 against the USD, the highest since the begining of March and heading for its biggest monthly gain since April 2025 as the greenback weakened broadly and investors weighed the impact of higher oil prices on interest rates.The DXY was trading lower for a 2nd session, with losses driven largely by a sharp advance in the yen following suspected intervention by Japanese authorities in currency markets.The CAD was also supported by a slightly less dovish Bank of Canada and high commodity prices.

The central bank signaled on Wendesday it could raise rates consecutively if elevated energy prices persist and fuel inflation, prompting markets to reassess the policy outlook.



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Canadian Dollar Hits 7-week High
The Canadian Dollar touched 1.36 against the USD, the highest since the begining of March and heading for its biggest monthly gain since April 2025 as the greenback weakened broadly and investors weighed the impact of higher oil prices on interest rates.The DXY was trading lower for a 2nd session, with losses driven largely by a sharp advance in the yen following suspected intervention by Japanese authorities in currency markets.The CAD was also supported by a slightly less dovish Bank of Canada and high commodity prices. The central bank signaled on Wendesday it could raise rates consecutively if elevated energy prices persist and fuel inflation, prompting markets to reassess the policy outlook.
2026-05-01
CAD Strengthens Following North American GDP Data
The Canadian dollar strengthened to 1.36 per USD, a one-month high, on support from a weaker greenback as markets assessed the outlook for the Bank of Canada. The US dollar pulled back as energy prices halted their rally and drove emerging markets to limit their aggressive pivot to the greenback. On top of that, an acceleration in domestic wages also supported the loonie. Meanwhile, data showed Canada’s GDP stalled in March, suggesting high energy prices weighed on overall spending. The outcome aligned with the BoC’s decision to hold rates this week, noting that inflation remains stable and that rising energy costs have not yet unanchored household expectations, dismissing an immediate need for more restrictive policy.
2026-04-30
CAD Stable Following BoC and US Fed Meetings
The Canadian dollar was stable at 1.37 per USD following the Bank of Canada's and the US Fed decisions to hold interest rates. The BoC kept its policy rate at 2.25% and stated that it does not expect the recent surge in energy prices to de-anchor inflation expectations, limiting the view of a potential hike this year. Meanwhile, the US dollar inched higher as markets increased exposure to safe-haven assets amid no signs of de-escalation between the US and Iran. The Fed held its benchmark interest rate in the range of 3.5% to 3.75%, citing the surge in oil prices and increased economic uncertainty from the Iran war.
2026-04-29