# Canadian dollar weakens as BoC foregoes rate hike | Financial Post

> The Canadian dollar weakened against the U.S. dollar on Jan. 26 after the Bank of Canada left its policy rate at a record low of 0.25%. Markets had priced about a 70% chance of a hike, and the central bank now signaled lift-off in March. The U.S. dollar rallied as the Federal Reserve also signaled a March rate hike.

- Date: 2022-01-26 · published 2022-01-26T12:00:00.000Z
- Category: macro · region Canada · magnitude medium
- Page: https://feedsoft.ai/events/43390-canadian-dollar-weakens-as-boc-foregoes-rate-hike-financial-post
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A firmer U.S. dollar and expected Fed tightening raise the cost of dollar-priced feed commodities for non-U.S. buyers. Higher oil prices partly offset the loonie's weakness, so the net effect on Canadian feed costs is mixed.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-09-28 | [Canadian dollar retreats from 3-week high as bond yields climb \| Financial Post](https://feedsoft.ai/events/45281-canadian-dollar-retreats-from-3-week-high-as-bond-yields-climb-financial-post.md) | +0.5% | -0.1% |
| DXY | 2023-02-15 | [Canadian dollar weakens as U.S. data boosts Fed rate hike prospects - The Globe and Mail](https://feedsoft.ai/events/37578-canadian-dollar-weakens-as-u-s-data-boosts-fed-rate-hike-prospects-the-globe.md) | +0.8% | +1.8% |
| DXY | 2021-09-23 | [Gold prices ease as dollar firms on Fed rate hike comments \| Financial Post](https://feedsoft.ai/events/44965-gold-prices-ease-as-dollar-firms-on-fed-rate-hike-comments-financial-post.md) | +1.0% | -0.0% |
| DXY | 2024-06-26 | [Canadian dollar weakens as boost from CPI data fades \| Kitco News](https://feedsoft.ai/events/30013-canadian-dollar-weakens-as-boost-from-cpi-data-fades-kitco-news.md) | +0.3% | -0.3% |
| DXY | 2022-01-28 | [Dollar set for sparkling week as hike expectations surge \| Financial Post](https://feedsoft.ai/events/12226-dollar-set-for-sparkling-week-as-hike-expectations-surge-financial-post.md) | -0.9% | -0.6% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/canadian-dollar-weakens-as-boc-foregoes-rate-hike

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