FXStreet put the U.S. dollar at about C$1.4090 in Asian trading Tuesday, as the Canadian currency advanced for a fourth session ahead of the Federal Reserve's next meeting and the Bank of Canada's rate decision.
FXStreet attributed the move partly to a softer U.S. dollar and firmer oil prices during Asian trading. The latest quote followed Monday's gain after Canada's inflation report, when Reuters reported one U.S. dollar near C$1.4096. Both rates are snapshots from trading rather than daily closing prices.
Monday's oil settlements presented a mixed picture. Reuters reported that the expiring November West Texas Intermediate contract settled at $103.66 a barrel, up 2.2%, while Brent ended at $109.55, down 0.3%. November WTI trading was relatively thin before the contract's Oct. 20 expiry. The more liquid December WTI contract fell 0.5% to $98.54.
The Bank of Canada has described commodity prices as one force behind major moves in its currency. RBC Economics says Canada exports more energy than it imports. Higher oil prices can increase earnings for energy exporters while leaving households with larger energy bills, it says, creating competing pressures for policymakers.
September inflation added to the policy picture. Statistics Canada said consumer prices were 3.1% higher than a year earlier, up from 3.0% in August. Gasoline prices rose 27.8%, while inflation excluding gasoline was 2.2%. CPI-median and CPI-trim, two core measures, were 1.9% and 1.8%, respectively.
RBC Economics projects no Bank of Canada rate change for the rest of 2026. Its forecast reflects a soft economy alongside continuing inflation risks. The September headline reading exceeded the central bank's 1% to 3% control range, although both core measures remained below 2%.
Statistics Canada is scheduled to release October inflation figures Nov. 16. Before then, the Fed meets Oct. 27-28, and the Bank of Canada announces its next rate decision Oct. 28 at 9:45 a.m. ET.
