The Canadian dollar is currently trading at 1.3365 (USD/CAD) or 0.74824 (CAD/USD) after reaching its strongest intraday level since May 8 at 1.3322 against the US Dollar. The Canadian dollar benefitted from a trifecta of positive news on multiple fronts today.
Firstly, data showed that Canada’s exports accelerated by 2.5% in April, reaching record levels by volume. Secondly, oil prices inched higher by 1 percent. Finally, and most notably, the Bank of Canada raised its benchmark interest rate by 25 basis points to 4.75 percent. Analysts viewed the Bank of Canada’s accompanying statement as rather aggressive or ‘hawkish,’ indicating a prioritization of controlling inflation over stimulating economic growth. This suggests that the bank is likely to raise interest rates again in July and September resulting in a potentially a stronger Canadian dollar versus the US dollar.
