CAD Surges to 1.40 Amid Fed Rate Hold

The Canadian dollar has strengthened to around 1.40 per USD after the Federal Reserve held rates unchanged, weakening the greenback as about a third of the market was positioned for a hike.

This decision follows the Bank of Canada's (BoC) recent policy rate hold at 2.25% for a sixth straight meeting.

The BoC noted that the economy is adjusting to recent shocks and energy-driven inflation pressures are easing, but some policymakers questioned the durability of the recovery and warned about rising inflation expectations.