The USD to CAD rate is currently sitting at 1.2710 (CAD to USD 0.7867) and is up just over half a cent this week, reaching its peak since mid-March. The USD dollar gained strength against the Canadian dollar and most major currencies on Thursday, following comments by Federal Reserve Chair, Jerome Powell, which clearly indicated that a half a percentage point interest rate increase “will be on the table” during the next few FED meetings. Within a very short time span, Bank of Canada Governor Tiff Macklem one-upped his FED colleague, when he indicated at an IMF meeting in Washington that he would not rule out even higher increases in Canada. The comments from the BoC Governor are the most poignant yet with regards to the bank’s urgency in addressing rising inflation. It was also meant to send a clear message that the BoC is willing to keep pace, and if needed, move beyond the FED rate hikes to tame inflation in Canada.
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