# Canadian dollar falls on widening rate differentials

> The Canadian dollar fell below 71 US cents on Sept 23 for the first time since July and was down 1.7% for the month. Traders raised bets on another Fed rate hike at the Oct 28 meeting, with the Fed funds rate at 3.75%-4.00% against the Bank of Canada's 2.25%.

- Date: 2026-09-23 · published 2026-09-23T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/17702-canadian-dollar-falls-on-widening-rate-differentials
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A stronger US dollar raises the cost of USD-priced feed imports for non-US buyers and can weigh on US export competitiveness. Rate-driven dollar strength is a moderate headwind for USD-denominated commodity prices.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2025-07-30 | [Canadian Dollar recedes after Fed rate hold — Octa](https://feedsoft.ai/events/23976-canadian-dollar-recedes-after-fed-rate-hold-octa.md) | -0.0% | -0.4% |
| DXY | 2020-10-18 | [Sterling and Yuan Resilience, While Rate Differentials Aid Dollar?  - Marc to Market  Marc Chandler on Global FX and Capital Markets](https://feedsoft.ai/events/50814-sterling-and-yuan-resilience-while-rate-differentials-aid-dollar-marc-to-market.md) | -0.7% | -1.7% |
| DXY | 2022-07-14 | [Canadian dollar falls to a 20-month low after supersized interest rate hike](https://feedsoft.ai/events/40721-canadian-dollar-falls-to-a-20-month-low-after-supersized-interest-rate-hike.md) | -0.6% | -2.1% |
| DXY | 2018-09-27 | [Dollar rises on Fed rate outlook; euro falls on Italian budget woes](https://feedsoft.ai/events/63247-dollar-rises-on-fed-rate-outlook-euro-falls-on-italian-budget-woes.md) | +0.4% | +1.6% |
| DXY | 2024-03-21 | [Dollar gains on risk sentiment, Swiss franc falls on surprise rate cut](https://feedsoft.ai/events/31392-dollar-gains-on-risk-sentiment-swiss-franc-falls-on-surprise-rate-cut.md) | +0.1% | +1.7% |

## Sources

- financialpost.com: https://financialpost.com/economy/canadian-dollar-falls-widening-interest-rate-differentials/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.