15.05.202617:42:05UTC+00Canadian Dollar Extends Pullback

The Canadian dollar edged lower to 1.37 per USD, extending its pullback from the seven-week high of 1.358 reached on April 30. The move reflected persistent inflation concerns and climbing US Treasury yields, which bolstered the greenback after stronger‑than‑expected US inflation data. The latest US CPI report showed headline inflation quickening to 3.8%, reinforcing expectations that the Federal Reserve may keep interest rates elevated for an extended period as price pressures broaden across the economy. The US dollar also drew support from ongoing geopolitical tensions in the Middle East, where limited progress in negotiations involving Iran has sustained worries that disruptions around the Strait of Hormuz could continue. At the same time, elevated oil prices helped cushion the commodity-linked Canadian dollar, limiting further downside.