Canadian Dollar hits fresh two-week lows amid higher yields, Fed hiking bets
The Canadian Dollar (CAD) depreciates against the US Dollar (USD) for the second consecutive day on Wednesday, weighed by growing risk aversion as global yields rise to multi-year highs and with expectations of an immediate Federal Reserve (Fed) rate hike providing additional support to the Greenbac
The Canadian Dollar (CAD) fell to its weakest levels in two weeks on Wednesday, as higher global yields and expectations of an imminent Federal Reserve (Fed) rate increase bolstered the US Dollar (USD). The USD/CAD pair soared above 1.3920 ahead of the Bank of Canada's (BoC) interest rate decision. The US Dollar regained its safe-haven status this week, with rising global yields and Middle East tensions contributing to risk aversion.
The BoC is expected to maintain its benchmark interest rate at 2.25% for the remainder of the year due to economic uncertainty. US data on Tuesday revealed a weaker-than-expected ISM Manufacturing PMI and lower-than-anticipated JOLTS Job Openings, but these figures did not impact the USD's rally as investors anticipate a September Fed rate hike.
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