The USD/CAD currency pair climbed to the mid-1.4200s on Wednesday, marking its highest level since April 2025. This move was driven by falling oil prices coupled with a firmer US Dollar, according to FX Street.
Geoff Yu from BNY highlighted that despite recent gains across USD/JPY, EUR/USD, and USD/CAD, the US Dollar remains undervalued in real effective terms. Additionally, softer growth and inflation in the Eurozone contrasted with strengthening U.S. price dynamics, supporting the Dollar’s further appreciation.
For Japanese investors, the strengthening USD against commodity-linked currencies like the CAD may influence FX and equities strategies, particularly amid ongoing volatility in global energy markets.