Canadian dollar holds near one-month low

On Wednesday, the exchange rate of Canadian dollar showed the same rates against the U.S. currency. The trend is holding currently near monthly lows as oil prices have already declined and the Bank of Canada is nearing the end of its rate hike cycle.

The Canadian dollar was the only G10 currency that did not strengthen against the U.S. dollar. However, in the beginning the Canadian dollar showed growth after the 50 basis point hike instead of the 25 expected by the money markets. 

The central bank refrained from stating any further rate increases. According to Darcy Briggs, portfolio manager at Franklin Templeton Canada, the central bank's policy tightening is over. Now the exchange rate will gradually stabilize.

According to a Reuters poll, the Canadian dollar will rise over the next year as the biggest consumer of commodities will ease restrictions due to COVID-19. In addition, the Fed may change the course of raising interest rates.