Canadian Dollar Weakens on US Interest Rate Hike

The Canadian dollar weakened on Wednesday following a significant development in US interest rates.

The US Federal Reserve raised its key overnight interest rate for the first time in three years, setting it to a range of 3.75 to four percent. The accompanying statements hinted at further increases as the central bank aims to control inflation.

This decision impacted the Canadian dollar, which 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.