# Bank of Canada Hawkish Tone Sparks Dollar Decline

> The U.S. dollar index fell 0.2% to 93.759 on Wednesday after the Bank of Canada took a hawkish tone and signalled that economic slack would be absorbed in the middle quarters of 2022. The loonie gained 0.7% against the greenback to trade at $1.2310. The euro and yen also rose against the dollar.

- Date: 2021-10-27 · published 2021-10-27T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/44819-bank-of-canada-hawkish-tone-sparks-dollar-decline
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

The Bank of Canada's earlier rate-hike signal strengthened the loonie and weakened the dollar broadly. Currency moves like this change the relative cost of imported commodities for buyers in Canada and the U.S.

## Read by commodity

- DXY: bearish ▼
- USDCAD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2026-01-27 | [Dollar sinks to four-year low, Trump brushes off the decline \| Reuters](https://feedsoft.ai/events/10159-dollar-sinks-to-four-year-low-trump-brushes-off-the-decline-reuters.md) | +0.3% | -0.1% |
| DXY | 2023-07-26 | [Dollar’s decline throws spotlight on battered commodity currencies](https://feedsoft.ai/events/35307-dollar-s-decline-throws-spotlight-on-battered-commodity-currencies.md) | +0.6% | +2.1% |
| DXY | 2021-06-28 | [Rand reverses dollar gains on the back of hawkish sentiment \| Freight News](https://feedsoft.ai/events/46877-rand-reverses-dollar-gains-on-the-back-of-hawkish-sentiment-freight-news.md) | +0.5% | +1.1% |
| DXY | 2021-08-27 | [Asian Currency Outlook: Bearish Bets Decline as Dollar Eases](https://feedsoft.ai/events/45814-asian-currency-outlook-bearish-bets-decline-as-dollar-eases.md) | -0.9% | -0.0% |
| DXY | 2020-12-15 | [C$ climbs as market shrugs off Bank of Canada 'jawboning'](https://feedsoft.ai/events/49870-c-climbs-as-market-shrugs-off-bank-of-canada-jawboning.md) | -0.2% | -0.9% |

## Sources

- globalbankingandfinance.com: https://www.globalbankingandfinance.com/u-s-dollar-index-falls-canadian-dollar-euro-yen-gain/

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