FX.co ★ CAD Stable Following BoC and US Fed Meetings

The Canadian dollar held steady at 1.37 per USD after both the Bank of Canada and the US Federal Reserve left interest rates unchanged. The BoC kept its policy rate at 2.25% and indicated that it does not expect the recent spike in energy prices to unanchor inflation expectations, tempering expectations for a rate hike later this year. At the same time, the US dollar edged higher as investors increased their exposure to safe-haven assets amid persistent tensions and no signs of de-escalation between the US and Iran. The Fed maintained its benchmark rate in the 3.5%–3.75% range, citing the jump in oil prices and heightened economic uncertainty stemming from the conflict with Iran.