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29.07.202619:40:35UTC+00Canadian Dollar Strengthens After Fed Hold

The Canadian dollar strengthened to about 1.40 per USD from a two-week high of 1.42 on July 27th, following the Federal Reserve’s decision to leave interest rates unchanged. The move pressured the US dollar, as roughly one-third of market participants had anticipated a rate hike. Earlier in the month, the Bank of Canada kept its policy rate steady at 2.25% for the sixth consecutive meeting. The central bank indicated that the economy was gradually adjusting to recent shocks and that energy-related inflationary pressures were easing. Still, some policymakers questioned the resilience of the recovery and cautioned that inflation expectations were rising. Notably, the BoC’s decision came before US President Trump threatened additional tariffs on Canadian imports and before the most recent escalation in US–Iran tensions.

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