Loonie poised for best month since April after Bank of Canada hike

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeEconomyLoonie poised for best month since April after Bank of Canada hikeThe loonie rose as much as 0.2% against the U.S. dollar on ThursdayAuthor of the article:The Canadian loonie on March 5, 2025. Photo by Peter J. Thompson/National PostThe Canadian dollar is heading for its largest monthly gain since April, supported by elevated oil prices and the Bank of Canada’s shift toward tighter monetary policy.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe loonie rose as much as 0.2 per cent against the U.S. dollar on Thursday, touching its strongest level in more than a month, bringing October’s advance to 1.9 per cent. Considered a commodity currency, it got a boost last week when Alberta voters rejected separation from Canada, easing political uncertainty in the major oil-producing province.This advertisement has not loaded yet, but your article continues below.The currency further “benefited from the Bank of Canada’s rate hike yesterday and from elevated oil prices given Canada’s position as a major exporter,” said Andrew Hazlett, a foreign-exchange trader at Monex Inc.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againThe Bank of Canada raised rates on Wednesday for the first time in more than three years to ward off upside inflation risks posed by higher energy prices, and said it would assess whether more increases are necessary one decision at a time.The central bank has been increasingly worried that higher oil prices resulting from the conflict in the Middle East would bleed through to prices of other goods and services. Canada released key economic data this month, showing inflation accelerated to 3.1 per cent in September as gasoline prices climbed.While the market anticipated a rate hike, the Bank of Canada’s inflation forecasts “were more aggressive than anticipated, suggesting further moves ahead,” said Sarah Ying, head of FX strategy at CIBC Capital Markets.BOC now sees inflation averaging 3.1 per cent in 2027, up from its previous two per cent forecast. It expects yearly inflation won’t return to the two per cent target until the middle of 2028. “Given that the Bank of Canada’s hiking cycle is still young relative to peers,” the currency has further room to strengthen, Ying said.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.