# Canadian loonie flies higher as markets digest Fed's inflation-tolerant policy | National Business | chroniclejournal.com

> The Canadian dollar rose to 76.35 US cents on August 28 as markets reacted to Fed Chair Powell's speech signaling tolerance for inflation overshoot. An analyst forecast further gains toward 77 cents near term and 79 cents over six months.

- Date: 2020-08-28 · published 2020-08-28T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/51856-canadian-loonie-flies-higher-as-markets-digest-fed-s-inflation-tolerant-policy
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expected US dollar weakness and a firmer loonie would make Canadian feed ingredients more expensive for US-dollar buyers. The impact on feed prices is indirect and depends on continued dollar trends.

## Read by commodity

- DXY: bearish ▼
- USDCAD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-11-24 | [Canadian dollar steadies as investors cheer Fed’s dovish signal - Markets - Business Recorder](https://feedsoft.ai/events/38909-canadian-dollar-steadies-as-investors-cheer-fed-s-dovish-signal-markets.md) | -1.4% | -1.2% |
| DXY | 2023-04-13 | [Indian rupee firms as cooling US inflation, recession woes hurt dollar - Markets - Business Recorder](https://feedsoft.ai/events/36660-indian-rupee-firms-as-cooling-us-inflation-recession-woes-hurt-dollar-markets.md) | +0.3% | -0.4% |
| DXY | 2023-07-27 | [Indian rupee to rise post what is seen as Fed’s last rate hike - Markets - Business Recorder](https://feedsoft.ai/events/35317-indian-rupee-to-rise-post-what-is-seen-as-fed-s-last-rate-hike-markets-business.md) | +1.2% | +1.9% |
| DXY | 2020-08-19 | [Sterling unfazed by higher inflation, still driven by dollar - Markets - Business Recorder](https://feedsoft.ai/events/51862-sterling-unfazed-by-higher-inflation-still-driven-by-dollar-markets-business.md) | +0.2% | -1.0% |
| DXY | 2026-09-30 | [Canadian dollar firms as softer U.S. inflation weighs on rate-hike bets By Investing.com](https://feedsoft.ai/events/17701-canadian-dollar-firms-as-softer-u-s-inflation-weighs-on-rate-hike-bets-by.md) | -0.1% | +0.7% |

## Sources

- chroniclejournal.com: https://www.chroniclejournal.com/business/national_business/canadian-loonie-flies-higher-as-markets-digest-feds-inflation-tolerant-policy/article_9e22335e-4be4-5c6f-ad9c-d039414d2638.html

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