Ella 
USD/CAD rose for the second day in Asia on Wednesday, trading around 1.3650. The market maintained risk aversion, pushing investors to the US dollar and supporting the USD/CAD currency pair.
Risk sentiment turned weak on Tuesday after Neel Kashkari, president of the Minneapolis Federal Reserve Bank, hinted that interest rate hikes were still possible. “I don’t think anyone is completely dismissing rate hikes,” Kashkari said. Kashkari questioned the progress of achieving deflation and predicted that the Fed would only cut interest rates twice.
Rising US Treasury yields also supported the dollar. The US dollar index, which measures the exchange rate of the US dollar against six major currencies, rose to around 104.70. At press time, the yield on the 2-year US Treasury bond and the yield on the 10-year US Treasury bond were 4.96% and 4.54%, respectively.
