The Canadian dollar moved higher against the U.S. dollar on Monday, reaching its strongest level in roughly seven weeks as investors prepared for the upcoming interest rate decision from the Bank of Canada.

The loonie gained approximately 0.5% during the session, trading near 1.3603 against the U.S. dollar after fluctuating within a relatively narrow intraday range.

Canadian government bond yields also edged higher. The yield on Canada’s 10-year benchmark bond climbed by about three basis points, while U.S. Treasury yields posted gains as well.

Energy markets provided additional support for the Canadian currency as crude oil prices continued to rise. U.S. West Texas Intermediate crude futures advanced by nearly two dollars per barrel, trading above $96 during the session.

Investors are now closely watching signals from the Bank of Canada regarding inflation, economic growth, and the future direction of interest rates, with market expectations remaining sensitive to both domestic data and global commodity prices.
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