The USD/CAD exchange rate declined to around 1.4165 during Asian trading hours on Thursday, supported by a rise in crude oil prices and growing expectations of further Bank of Canada rate hikes, according to FX Street.
The Canadian dollar strengthened against the US dollar as investors factored in the positive impact of higher oil prices on Canada’s resource-driven economy, alongside speculation that the Bank of Canada may tighten monetary policy further to combat inflation.
For Japanese investors, movements in USD/CAD are closely watched as shifts in commodity-linked currencies can signal broader risk sentiment changes, which often ripple through global FX and equity markets, including those in Japan.