Canadian Dollar Slips from 1-Month High

2026-07-20 16:29 By Isabela Couto 1 min. read

The Canadian dollar weakened to around 1.41 per USD in July, pulling back from a near one-month high following the release of June's inflation report.

Canada's annual inflation rate eased to 2.8% in June 2026 from 3.2% in May, slightly below forecasts of 2.9%.

Gasoline prices increased at a slower pace, while the Bank of Canada's preferred core inflation measures fell to their lowest levels in more than five years, reinforcing the BoC's view that the impact of higher energy costs stemming from the Middle East oil supply crisis is not spreading broadly throughout the economy.

The softer inflation data reduced expectations of further Bank of Canada interest rate hikes this year, lowering the relative yield that attracts foreign capital.

At its latest meeting, the Bank of Canada kept its key policy rate unchanged at 2.25%, as widely expected.



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Canadian Dollar Slips from 1-Month High
The Canadian dollar weakened to around 1.41 per USD in July, pulling back from a near one-month high following the release of June's inflation report. Canada's annual inflation rate eased to 2.8% in June 2026 from 3.2% in May, slightly below forecasts of 2.9%. Gasoline prices increased at a slower pace, while the Bank of Canada's preferred core inflation measures fell to their lowest levels in more than five years, reinforcing the BoC's view that the impact of higher energy costs stemming from the Middle East oil supply crisis is not spreading broadly throughout the economy. The softer inflation data reduced expectations of further Bank of Canada interest rate hikes this year, lowering the relative yield that attracts foreign capital. At its latest meeting, the Bank of Canada kept its key policy rate unchanged at 2.25%, as widely expected.
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