The Canadian dollar depreciated against the U.S. dollar on Tuesday, trading at 1.3283 to the greenback, or 75.28 U.S. cents. This movement occurred as markets anticipated the Bank of Canada’s upcoming interest rate announcement.

Economists widely expect the central bank to maintain its overnight rate at 0.5 percent. The Canadian dollar has been under pressure due to several factors, including:

• Global economic uncertainty
• Persistent low oil prices, a key export for Canada

Analysts suggest that while the Canadian economy has shown some resilience, the Bank of Canada is likely to remain cautious given the external risks. The central bank’s statement accompanying the rate decision will be closely scrutinized for clues about future monetary policy direction.

The loonie’s performance is also influenced by movements in the U.S. dollar, which has generally strengthened against a basket of currencies in recent weeks. This strength reflects expectations of a potential interest rate hike by the U.S. Federal Reserve in December.