Loonie Hits Seven-Month High After BoC Interest Rate Freeze

The Canadian dollar has gained ground after the Bank of Canada announced its latest interest rate freeze. The loonie closed at US$0.7213, a two-tenths of a cent increase from Tuesday's close. This move comes as the BoC maintains an overnight rate of 2.25 per cent for the seventh consecutive announcement.

The central bank acknowledged that incoming tariffs and the possibility of greater inflation could impact its interest rate decisions in the future. The Canadian dollar has been affected by the ongoing trade tensions between the US and Iran, which have led to fluctuations in crude oil prices.

Benchmark crude oil prices rose on Wednesday, with West Texas Intermediate increasing 53 cents to US$90.75 per barrel, while Brent crude added 71 cents to US$95.36. The TSX Composite Index also climbed 265.88 points to close at 36,091.61.