# Bank of Canada and Fed head for historic divergence, in a blow to loonie | Kitco News

> The Canadian dollar hit a four-month low of 1.3815 per U.S. dollar after the Bank of Canada paused its hikes at 4.50%. Investors expect a historically large gap between BoC and Fed tightening because Canada's economy is more sensitive to rates.

- Date: 2023-03-09 · published 2023-03-09T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/37102-bank-of-canada-and-fed-head-for-historic-divergence-in-a-blow-to-loonie-kitco
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A widening rate gap with the Fed pressures the loonie and lifts USD/CAD, which makes U.S.-priced feed imports costlier for Canadian buyers and can raise Canadian inflation.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- kitco.com: https://www.kitco.com/news/off-the-wire/2023-03-09/bank-canada-and-fed-head-historic-divergence-blow-loonie

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