The Canadian dollar strengthened to a four-week high against the U.S.dollar following the Bank of Canada's (BoC) policy decision, though its gains were limited as the central bank omitted hawkish language from its outlook.The loonie traded at 1.4032 USD, its strongest level since June 17, despite speculators increasing bearish bets on the currency to the highest level in 18 months.The BoC maintained its benchmark interest rate at 2.25% for the sixth consecutive meeting, citing improved inflation prospects and stronger growth expected in the second half of the year.Analysts noted that while the CAD's rise was driven by U.S.dollar weakness, factors like Fed policy and oil prices will likely shape future movements.Canadian government bond yields fell alongside U.S.Treasuries, with the 10-year note dropping to 3.536%.Speculative activity suggests continued uncertainty around currency trends.