The Canadian dollar has weakened to its lowest level since early 2025, when U.S. President Donald Trump announced tariffs on Canadian exports.
The loonie fell to around 70 cents to the U.S. dollar by June 25, and stayed at the same level the next day. Previously, it had briefly dropped to 68 cents in February 2025 as the United States announced protectionist trade policies.
At the same time Canada’s dollar declined, the U.S. dollar’s strength reached a one-year high this week, after Federal Reserve Chair Kevin Warsh centred his June 17 news conference around fighting rising inflation. While the Federal Reserve kept interest rates steady, higher rates would directly strengthen the U.S. dollar….