Business · Markets · 7 hrs ago
Canadian dollar reaches six-week high as oil prices climb
Canada’s dollar rose to a six-week high against the US dollar on Friday.
Higher oil prices supported the currency because oil is one of Canada’s major exports.
Canada’s economy stalled in August, and early estimates showed GDP falling 0.1% in September.
The Bank of Canada raised its key rate to 2.50% on Wednesday and said more increases may be needed to stop higher energy costs from spreading inflation.
Investors see a roughly 50% chance of another increase in December and expect one by January.
Oil prices climbed as traders prepared for a possible escalation in the US-Iran conflict after the US midterm elections.
The Canadian dollar reached a six-week high against the US dollar on Friday as oil prices climbed.
The currency rose 0.2% to 1.3955 per US dollar, after touching 1.3943, its strongest level since September 16.
Higher oil prices supported expectations that the Bank of Canada may raise interest rates further, despite weak Canadian economic data.
The Bank of Canada raised its key rate by 25 basis points to 2.50% on Wednesday and said further increases might be needed.
Investors saw about a 50% chance of another rate increase in December and had fully priced in a move by January.
- Who
- The Canadian dollar and the Bank of Canada.
- What
- The Canadian dollar reached a six-week high as oil prices rose. The increase supported expectations of further interest-rate rises.
- When
- Friday, October 30, 2026.
- Where
- Against the US dollar in currency trading.
- Why
- Rising oil prices raised concerns about inflation and supported bets on tighter monetary policy.
This story does not have two clearly opposing sides.
The Bank of Canada raised its key interest rate by 25 basis points to 2.50% and said further increases might be needed.
The Canadian dollar reached its strongest intraday level since September 16 as oil prices climbed.
- Exchange rate
- 1.3955 per US dollar, or 71.66 US cents
- Intraday high
- 1.3943 per US dollar
- Monthly gain
- On track for 2%, its biggest monthly advance since April
- Bank of Canada rate
- Raised by 25 basis points to 2.50%
- US crude oil
- Up 2.7% to $104.80 a barrel
What people are saying
Markets ignored Canadian GDP and with good reason
While the figures disappointed somewhat, the BoC is forward-looking and focused upon rising inflation risk that has many complex drivers — like oil that is fired up this morning