Canadian dollar rallies the most in three months as Fed's Powell turns more dovish

Canadian dollar rallies the most in three months as Fed's Powell turns more dovish

Source: EODHD - https://www.investing.com/news/forex-news/canadian-dollar-weakens-benchmark-yield-slips-4206937
Published: Aug 22, 2025 2:16 PM

By Fergal Smith TORONTO (Reuters) - The Canadian dollar recouped all of its weekly decline against the U.S. dollar on Friday as Federal Reserve Chair Jerome Powell opened the door to interest rate cuts and Canada made a move to ease trade tensions with the United States. The loonie was trading 0.7% higher at 1.3815 per U.S. dollar, or 72.39 U.S. cents, putting the currency on track for its largest gain since May 23. For the week, the loonie was barely changed after it was pressured on Tuesday by cooler-than-expected domestic inflation data that raised expectations the Bank of Canada would resume its easing campaign over the coming months. "The CAD had been roughed up somewhat by the USD over...

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