Suspected Japanese intervention strengthens the Yen, pressuring the USD and lifting the Canadian Dollar to its lowest level in six weeks.
The Canadian Dollar surged to a six-week low against the US Dollar, with USD/CAD falling to 1.3996 as the USD weakened broadly. The move follows a sharp rally in the Japanese Yen, suspected to be driven by intervention from Japanese authorities.
Prior to the decline, USD/CAD had traded in a tighter range, with the pair last testing levels near 1.4000 in mid-August. The broader USD sell-off reflects shifting market sentiment amid expectations of divergent monetary policies.
Markets are monitoring the pair’s next support levels as the USD remains under pressure across major currencies.