The Canadian Dollar weakens 0.23% against the USD amid Middle East tensions and monetary policy divergence.
The USD/CAD pair climbed 0.23% to 1.3975 on Thursday, reflecting a stronger US Dollar driven by safe-haven demand. Persistent geopolitical tensions in the Middle East bolstered the greenback’s appeal as investors sought stability.
Earlier, the pair traded near 1.3950, with the US Dollar index maintaining upward momentum. Policy divergence between the Federal Reserve and the Bank of Canada has also contributed to the CAD’s underperformance, as markets price in differing interest rate trajectories.
No immediate market reaction was specified beyond the intraday move.