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Bank of Canada Hikes for First Time in Over Three Years; USD/CAD Near 1.399

Bank of Canada Hikes for First Time in Over Three Years; USD/CAD Near 1.399

24hrfx Desk · Oct 29, 2026

The Bank of Canada raised its policy rate on Wednesday for the first time in more than three years and said further increases may be needed, according to a Reuters report on the day's central bank decisions. The move had been widely previewed, with pre-decision articles citing odds of a hike ranging from about 61% to near 80%.

What the market did

  • The Canadian dollar traded at about 1.399 per US dollar in early Asian trade on Thursday.
  • Oil, a major Canadian export, was lower on the day: WTI near 101.2 and Brent near 110.0, each down around 1.5% on news-site tickers.

The loonie's reaction looked muted against a Fed that held but kept December hike odds high. The relationship with oil is loose; see our guide on oil prices and the Canadian dollar.

Quotes are snapshots and may have moved. Market commentary only, not a trading recommendation.