Canadian Dollar Rises After Rate Hike
The Canadian dollar strengthened and bond yields rose as the Bank of Canada raised interest rates by 25 basis points to 2.50 percent. Meanwhile, the Federal Reserve left US borrowing costs unchanged following its latest meeting.
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Canada raised its key interest rate by 25 basis points to 2.50% on Wednesday afternoon, lifting the local currency as bond yields climbed. The move marks the central bank's first rate increase in over three years. Investors are pricing in further monetary tightening to combat rising energy costs.
