Canadian Dollar Weakens Ahead of Bank of Canada Decision
The Canadian dollar dropped against its US counterpart as traders increased bets on a Federal Reserve rate hike. Meanwhile, domestic bond yields climbed to a two-year high ahead of the Bank of Canada policy announcement.
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The Canada dollar fell 0.4% to 1.3905 per USD/CAD on Tuesday afternoon as United States interest rate hike bets weighed on the currency. The move places the loonie among the sharpest decliners across Group of 10 currencies. The local 10-year yield rose 1.5 bps to 3.754% after touching a 2-year high of 3.790% earlier in the session.
