Archive · 19 Aug 2025
Canadian Dollar Falls on Inflation Data, Rate Cut Bets
The Canadian dollar, often called the loonie, lost some value compared to the U.S. dollar.
This happened because inflation in Canada slowed down, meaning prices aren't rising as quickly.
Because of this, there's a higher chance that Canada's central bank might lower interest rates to help boost the economy.
Also, the price of oil, which is a major export for Canada, went down.
The loonie is now at its lowest point since early August.
The ending of a strike by flight attendants at Air Canada could be a positive factor for the economy.
Canadian dollar fell 0.4% against the U.S. dollar.
The loonie touched its weakest level since August 1.
Canada's annual inflation rate eased to 1.7% in July.
Investors see a 39% chance of a rate cut by the Bank of Canada.
Oil prices fell by 1.1%.
- Who
- Investors and the Bank of Canada
- What
- Canadian dollar weakened due to lower inflation data and falling oil prices.
- When
- August 19
- Where
- Canada
- Why
- Cooler inflation data increased expectations for a Bank of Canada rate cut.
- Loonie's drop
- 0.4%
- Weakest level
- 1.3860 against USD
- Inflation Rate
- 1.7% (July)
- Oil Price Drop
- 1.1%
- Rate Cut Chance
- 39%