CAD Weakens as Fed Hikes Interest Rates

The Canadian dollar weakened on Wednesday in response to the latest interest rate news from the United States. The US Federal Reserve raised its key overnight interest rate for the first time in three years, taking it to a range of 3.75 to four per cent. This move suggests that more increases are likely as the central bank tries to control inflation.

The Canadian dollar settled at US$0.7170 or US$1=C$1.3947 compared to Tuesday's close of US$0.7185 or US$1=C$1.3917. This represents a slight weakening in value against the US dollar.