The Canadian dollar climbed to its highest level in nearly two weeks against the U.S. dollar on Wednesday, buoyed by broad weakness in the greenback and a reduced likelihood that the Bank of Canada will resume interest rate cuts next month.

The loonie appreciated by 0.6%, trading at 1.3832 per U.S. dollar, or 72.30 U.S. cents, after reaching an intraday high of 1.3815 — its strongest since May 8.

“We’re seeing continued momentum for the Canadian dollar following Tuesday’s stronger-than-expected CPI data, which has led markets to scale back expectations for a rate cut at the Bank of Canada’s June meeting,” said George Davis, Chief Technical Strategist at RBC Capital Markets.

He added, “The underperformance of Canadian bonds relative to their U.S. counterparts has supported CAD gains, further amplified by broader U.S. dollar weakness.”

Tuesday’s domestic data showed core inflation picked up in April. As a result, markets now assign only a 27% probability to a BoC rate cut on June 4, down from 65% prior to the inflation release, according to swap market pricing.

Last month, the central bank held its benchmark interest rate steady at 2.75%, marking its first pause since launching its rate-cutting cycle in June of the previous year.

The U.S. dollar index (.DXY) slipped against a basket of major currencies amid uncertainty surrounding the Trump administration’s tax reform and spending plans.

Meanwhile, concerns grew that U.S. officials might be pursuing a weaker dollar strategy in the context of separate trade negotiations during the Group of Seven (G7) finance ministers’ meeting currently taking place in Canada.

Canadian Finance Minister François-Philippe Champagne said G7 finance leaders will aim to reach consensus on policies to support global growth and financial stability.

Canada’s 2-year government bond yield rose by 6.6 basis points to 2.713%, while the yield spread with its U.S. counterpart narrowed by 1.9 basis points to roughly 1.30 basis points in favor of the U.S. bond.