On April 17, 2023, the Canadian dollar, commonly referred to as the loonie, appreciated by 0.2% against the U.S. dollar, reaching a one-month high of 1.3650. This increase follows the announcement by Iranian Foreign Minister Abbas Araqchi that the Strait of Hormuz, a crucial waterway for global oil and liquefied natural gas transport, is now open after a ceasefire agreement in Lebanon. The loonie's performance this week, with a 1.2% rise, marks its largest weekly gain since January. The news has encouraged market optimism, with analysts suggesting it may lead to increased oil inventories, benefiting Canada's economy as a major energy producer. In related market movements, U.S. crude oil futures settled 11.45% lower at $83.85 per barrel. Additionally, Canadian bond yields fell across the curve, following trends in U.S. Treasuries. As inflation is projected to rise to 2.5% in March, up from 1.8% in February, expectations are growing for the Bank of Canada to raise interest rates later this year.