Canadian Dollar Hits One-Month High

2026-07-15 16:11 By Isabela Couto 1 min. read

The Canadian dollar strengthened to around 1.40 per USD in July, reaching its strongest level in nearly a month after the Bank of Canada kept its key policy rate unchanged at 2.25%, as widely expected.

The central bank struck a relatively hawkish tone, noting that the economy is showing signs of improvement, with stronger growth projected over the medium term and inflation expected to remain above previous forecasts in 2026 before gradually easing.

Policymakers also highlighted persistent risks stemming from the conflict in the Middle East and US trade policy, reinforcing expectations that interest rates will remain unchanged for an extended period.

The loonie also benefited from a softer US dollar after US producer prices came in below expectations.



News Stream
Canadian Dollar Hits One-Month High
The Canadian dollar strengthened to around 1.40 per USD in July, reaching its strongest level in nearly a month after the Bank of Canada kept its key policy rate unchanged at 2.25%, as widely expected. The central bank struck a relatively hawkish tone, noting that the economy is showing signs of improvement, with stronger growth projected over the medium term and inflation expected to remain above previous forecasts in 2026 before gradually easing. Policymakers also highlighted persistent risks stemming from the conflict in the Middle East and US trade policy, reinforcing expectations that interest rates will remain unchanged for an extended period. The loonie also benefited from a softer US dollar after US producer prices came in below expectations.
2026-07-15
Canadian Dollar Hits 4-week High
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2026-07-15
Canadian Dollar Gains on Strong Jobs Data
The Canadian dollar rebounded to 1.41 per USD from the 15-month low of 1.425 on June 28th after stronger-than-expected employment data. Canada added 18,200 jobs in June following an 88,000 increase in May, while the unemployment rate unexpectedly fell and tied its lowest level in nearly two years, reducing the risk that the Bank of Canada would cut rates to attend a weaker economy. Meanwhile, oil prices retreated on signs that diplomatic efforts between the US and Iran remain on track despite recent tensions, easing some energy-driven inflation concerns.  At the same time, the US dollar remained firm amid the possibility of a Federal Reserve rate hike later this year.
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