US Dollar Strengthens Against The Loonie as Higher CPI Sparks Rate Hike Expectation

01:47 PM EDT, 10/14/2026 (MT Newswires) -- The US dollar strengthened against its Canadian counterpart on Wednesday afternoon as US September inflation data edged higher, leading to higher expectations of an interest rate increase. The greenback was last seen up 0.3% at CA$1.4254. US Consumer Price Index (CPI) data for September rose to 0.6% month over month, following a 0.4% increase in August. The index increased 3.7% before seasonal adjustment over the last 12 months. The 10-year US Treasury yields edged down 1.1 basis points to 5.206% while 30-year bonds fell 3.2 basis points to 5.531%. Comex gold futures for December fell 1.8% to $4,106.90 per ounce, a more than two-month low. Oil prices jumped as the International Energy Agency warned in a report published Wednesday that oil shortages would persist to 2027. "Despite lower demand, oil market balances are forecast to remain in deficit through the end of the year, with constrained middle distillate supplies likely to persist well into 2027," the IEA said. West Texas Intermediate November futures benchmark rose 1.5% to $95.55 per barrel. December Brent crude futures advanced 0.8% to $106.53 per barrel.