The Canadian dollar weakened to 1.37 per USD from the one-month high of 1.36 on April 27, following the Bank of Canada's and the US Fed decisions to hold interest rates. The BoC kept its policy rate at 2.25% and stated that it does not expect the recent surge in energy prices to de-anchor inflation expectations, limiting the view of a potential hike this year. Meanwhile, the US dollar strengthened as markets increased exposure to safe-haven assets amid no signs of de-escalation between the US and Iran. The Fed held its benchmark interest rate in the range of 3.5% to 3.75%, citing the surge in oil prices and increased economic uncertainty from the Iran war.