The Canadian dollar slightly weakened against the U.S. dollar on Tuesday but outperformed most other G10 currencies, supported by rising oil prices. Investors are awaiting the Bank of Canada's interest rate decision on Wednesday, with economists largely expecting the rate to hold at 2.75% despite faster-than-expected Q1 GDP growth. Wildfires in Alberta have impacted oil sands production.
Canadian dollar outperforms eight G10 currencies as investors await BoC rate decision
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TL;DR: Key points with love ❤️The Canadian dollar slightly weakened against the U.S. dollar on Tuesday but outperformed most other G10 currencies, supported by rising oil prices. Investors are awaiting the Bank of Canada's interest rate decision on Wednesday, with economists largely expecting the rate to hold at 2.75% despite faster-than-expected Q1 GDP growth. Wildfires in Alberta have impacted oil sands production.
Trending- 1 June last year: BoC easing campaign began
- 2 April: BoC left rates on hold
- 3 Q1: Canadian economy grew faster than expected
- 4 Tuesday (article date): Canadian dollar performance, oil prices rise
- 5 Wednesday (after article): BoC to hold benchmark interest rate at 2.75% (expected)
- Canadian dollar slightly weaker against U.S. dollar
- Canadian dollar stronger against other G10 currencies
- Oil prices rose
- Wildfires in Alberta affected oil sands production (344,000 barrels/day)
- Canadian bond yields rose
What: The Canadian dollar edged lower against the U.S. dollar but outperformed most other G10 currencies.
When: Tuesday (article date); Wednesday (BoC rate decision); Q1 (GDP growth); June last year (BoC easing campaign began); April (BoC left rates on hold); article published June 3, 2025.
Where: Canada, United States, Ukraine, Iran, Alberta.
Why: Oil prices rose due to the war in Ukraine and Iran's rejection of a U.S. nuclear deal proposal; investors are awaiting the Bank of Canada's interest rate decision, with expectations of a hold due to sticky core inflation and good Q1 GDP.
How: The loonie's performance is influenced by oil prices and central bank policy expectations.