Canadian dollar falls to lowest level in over a year amid U.S. dollar strength and Fed hawkishness
By
Sophia Bertuzzi
Summary
The Canadian dollar (loonie) has fallen to its lowest level in over a year, hovering just above 70 US cents. The decline is driven primarily by strong U.S. dollar demand and a hawkish shift at the Federal Reserve, rather than solely by trade war concerns. The loonie had previously dropped below 69 US cents during the early stages of Trump's protectionist trade policies in 2025, but the current weakness is more attributable to U.S. dollar strength.
Source
bskyCanadian dollar falls to lowest level in over a year amid U.S. dollar strength and Fed hawkishnesstheglobeandmail.comKey quotes
· 3 pulledThe loonie has hovered just above 70 US cents this week, down from a high above 74 US cents in late January.
It had dropped below 69 US cents last year as the second Trump administration embraced protectionist trade policies that posed threats to the Canadian economy.
Of late, however, the currency's weakness is largely a story of U.S. dollar strength
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