Canadian dollar strengthens slightly against USD, oil prices rise ahead of Fed decision

From The Globe and Mail: 2024-06-11 15:46:36

The Canadian dollar edged higher against the U.S. dollar on Tuesday, trading at 1.3750 or 72.73 U.S. cents. Oil prices rose as investors awaited a Federal Reserve interest rate decision, with the U.S. dollar strengthening ahead of a key inflation report that could influence the timing of a Fed rate cut.

The U.S. central bank is expected to keep interest rates unchanged at its two-day policy meeting on Wednesday. The performance of the Canadian dollar against the greenback will be closely tied to the inflation data and Fed rate decision. The Bank of Canada was the first G7 central bank to cut rates last Wednesday, with BoC Governor Tiff Macklem participating in an economic volatility panel discussion on Wednesday.

The price of oil settled slightly higher at $77.90 a barrel, benefiting one of Canada’s major exports. Canadian bond yields decreased across a flatter curve as U.S. yields also fell, with the 10-year yield down 3.1 basis points at 3.475 per cent.



Read more at The Globe and Mail: Canadian dollar holds near two-month low ahead of Fed decision