Fed Hike Sinks Loonie to Six-Week Low
The US Federal Reserve (Fed) raised its interest rate to 3.75-4.00%, marking its first increase since 2023 and its first move since the cut in December 2025.
This decision widened the gap between the US and Canadian interest rates, with the Bank of Canada's overnight rate remaining at 2.25% through seven consecutive meetings.
The increased interest rate gap led to a decline in the value of the Loonie, sending it to a six-week low.