The Canadian dollar strengthens against the USD, hitting a four-week high near 1.4040 amid rising oil prices and Bank of Canada policy expectations.
The USD/CAD pair extended losses for a second consecutive session, dropping to a four-week low near 1.4040-1.4045 during Asian trading. The Canadian dollar gained support from rising oil prices, a key export for Canada, bolstering its appeal against the greenback.
Prior to this move, the pair had traded in a tighter range, with recent sessions showing limited volatility. Market focus has shifted toward the Bank of Canada’s upcoming policy decisions, as traders assess potential shifts in monetary stance amid economic data.
No immediate market reaction was specified, but the move reflects broader sentiment around commodity-linked currencies and central bank expectations.