Canadian Dollar Slides to 18-Month Low as US-Canada Rate Gap Widens

TORONTO: The Canadian dollar has extended its losing streak against the US dollar, touching an 18-month low as investors respond to widening interest-rate differentials and changing oil prices.

Loonie falls near 70 US cents

Reuters reported the currency trading around C$1.4257 per US dollar, or about 70.14 US cents, after touching C$1.4263 a day earlier.

Currency markets are sensitive to differences between Canadian and US interest rates because higher relative yields can increase demand for US-dollar assets.

Trade uncertainty remains another pressure

Canada is also navigating renewed trade tensions with its largest trading partner. A weaker currency can support exporters but raises the Canadian-dollar cost of imported goods.

Follow Canadian economy news at NewsNationOnline. Source: Reuters.

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Imran Siddiqui

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