The Canadian dollar slid past 1.38 per US dollar, its weakest level in two months, after the Bank of Canada held its policy rate at 2.75%, offering little lift to an economy set for a flat Q2 if June’s modest 0.1% rebound materializes. Meanwhile, the US dollar has climbed to two-month highs, underpinned by the Federal Reserve’s decision to keep rates unchanged at 4.25%–4.50% and Chair Powell’s warning that it is too soon to consider cuts. Stronger-than-expected US GDP growth and private-sector employment gains further bolstered the greenback, and, with no fresh US–Canada trade pact in sight and looming tariff risks, investors have doubled down on dollar-carry strategies, leaving the loonie under sustained pressure.