Dollar Declines Following Canada’s Policy Decision

The U.S. Dollar (USD) switched to losses on Wednesday, after rising earlier in the session against its peers, after the Bank of Canada (BoC) signaled a sooner than previously expected rate hike.

Although the BoC held its key rate unchanged at 0.25%, it now expects to raise interest rates by the second half of next year, compared with its previous estimate for 2023, as it views the recovery is accelerating.

The Dollar Index (DXY), which measures the greenback’s performance against a basket of half a dozen of international currencies, is down by 0.08% at 91.17, after rising earlier as high as 91.43, before falling to a daily low of 91.09, noting that it closed Tuesday at 91.24.