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USD/CAD slips to a six-week low near 1.4000 as yen rallies
USD/CAD extended its slide after USD weakened broadly when USD/JPY dropped nearly 480 pips below 160.00, boosting speculation of Japanese FX intervention.
The Canadian dollar strengthened, pushing USD/CAD lower to around 1.3996, the pair’s six-week low and a third consecutive day of declines, according to FXStreet.
The move followed a sharp rally in the Japanese yen, with USD/JPY plunging nearly 480 pips and slipping below the 160.00 level, which has fueled speculation that Japanese authorities may have intervened in the FX market to support the currency.
FXStreet also linked the dollar’s broader weakness to softer US inflation and growth signals, including weaker-than-expected second-quarter GDP and subdued core PCE, which led traders to scale back expectations for a September Federal Reserve rate hike.
Still, the article notes inflation risks may be rising again as the Middle East war disrupts energy supplies and keeps oil prices elevated, supporting the case for restrictive policy for longer, while attention turns to Canada’s monthly GDP data due Friday.
Latest closeUSD/JPY 159.74 ▼2.5%