Canada: Dollar Weakens to 1-Year Low.

The Canadian dollar sank to a one-year low of 1.42 per USD in late June amid, tracking other G10 currencies as the outlook of a hawkish Fed supported the US dollar. Multiple FOMC members projected more than one rate hike this year as US inflation picks up. Meanwhile, core inflation rates tracked by the Bank of Canada remained near their 2% target in May despite the surge in energy prices during the period, aligning with the central bank's earlier signal that the war in Iran may only have transitionary effects on headline price growth. The Bank of Canada kept its key interest rate unchanged at 2.25% at its latest meeting, and signaled that it sees risks on both sides of its inflation and employment mandate amid the uncertain economic backdrop.