The rise in higher Canadian inflation in March continued to provide support for trading the loonie dollar rising against the greenback dollar.
Like the situation in other countries, Canada’s consumer price index (CPI) rose to a 31 -year high last month, recording up to 6.7% from 5.7% previously recorded.
These recorded figures prove that the action of the Central Bank of Canada (BOC) to raise interest rates last week was right, namely with an increase of 50 basis points to 1.00%.
With the continued increase in the inflation rate, investors increased confidence that the BOC will implement an increase at the same rate at the next meeting.
The BOJ is also expected to remain ahead of the Federal Reserve (Fed) in monetary policy setting, making the loonie less impressed with the strengthening U.S. dollar against most other major currencies.
The Canadian dollar traded at a nearly three-week high even amid volatile crude oil trading.
Meanwhile, Canadian 2 -year bond yields hit their highest level since October 2008 following the release of inflation data at 2.59%.
