US Dollar Strengthens Against The Loonie as Expectations Build for A US Fed Rate Rise

02:12 PM EDT, 09/11/2026 (MT Newswires) -- The US dollar inched higher against its Canadian counterpart on Friday afternoon as bets rose on the US Federal Reserve hiking rates at its meeting next week. The US Consumer Price Index (CPI) rose by 0.4% month-on-month in August, and held at 3.4% on an annualized basis. However, core inflation came in slightly hotter than anticipated, noted TD Economics. "The stronger-than-expected reading on core inflation leaves the Fed with little room to remain on the sidelines. With oil prices up significantly in recent weeks, again hovering around $100 per-barrel and underlying price pressures in services remaining sticky, a rate hike at next week's meeting now appears all but certain," wrote Thomas Feltmate, director and senior economist at TD Economics. US 10-year bond yields also continued to climb and were up 4.955% on Friday, despite the US Treasury Department raising bond buybacks to up to $6 billion. The greenback edged up 0.2% to CA$1.3863 on last look. Oil prices fell on Friday, following the prior session's rally. West Texas Intermediate October crude oil futures, the US benchmark, down 2.7% to $99.73 per barrel. November Brent oil futures, the international benchmark, fell 3% to $104.54 per barrel. Comex gold December futures edged down 0.1% to $4,402.80 per ounce.