The Canadian dollar USDCAD, +0.60% tumbled to its lowest level since early June against its U.S. rival on Wednesday, as the Bank of Canada acknowledged the strain falling oil prices CLF9 will have on the Canadian economy. Activity in the sector "will likely be materially weaker than expected," a statement by the central bank read. That said, the BOC expected interest rates needed to rise to a neutral range to achieve its inflation target. On Wednesday, its overnight benchmark rate was kept unchanged at 1.75%. The BOC also said the economy was losing momentum going into the fourth quarter due to heightened trade uncertainty in the summer that impacted business investment. However, the signing of the USMCA trade agreement to replace the North American Free Trade Agreement should have a positive impact. One U.S. dollar was last sharply higher, buying C$1.3393, compared with C$1.3266 late Tuesday.