The Canadian dollar has reached its highest level since early June, rising 0.5% to 1.3823 per US dollar, or 72.34 US cents. This increase comes after the United States delayed new tariffs on Canadian goods, with US President Donald Trump announcing a three-day pause on the tariffs. According to strategists at Monex Europe, the temporary reprieve for the loonie may not last, depending on the outcome of negotiations in the coming days.
The US dollar fell broadly against a basket of major currencies as a selloff in US Treasuries eased, with investors awaiting minutes from the Federal Reserve's latest policy meeting for additional guidance. Yields on 30-year US Treasuries dropped after the Treasury Department announced it would double the size of liquidity support buyback operations for longer-dated bonds.
