CAD Crashes to Five-Week Low as Hawkish Fed and Oil Price Slump Weigh

The Canadian Dollar (CAD) has reached a five-week low against the US Dollar (USD), following the Federal Reserve's (Fed) decision to hike interest rates by 25 basis points to 3.75%-4.00%.

Financial market participants have raised hawkish Fed bets after remarks from Chairman Kevin Warsh, stating that prices pressures are significantly higher for a long time.

The pause in the oil price rally has also weighed on the CAD, as oil prices struggle to extend their rally above $100, diminishing the appeal of currencies from economies like Canada, which are net energy exporters.