Canadian Dollar Weakens to 6-Month Low

2025-10-15 18:48 By Felipe Alarcon 1 min. read

The Canadian dollar weakened past 1.4 per US dollar in mid-October to six-month lows, pressured by softer crude prices, slowing domestic data, and expectations of lower Bank of Canada policy rates.

Oil, Canada’s largest export, has dropped to five-month lows amid persistent US-China trade tensions, rising supply, and anticipated US inventory builds, raising fears of oversupply and weaker demand and removing a key support for the currency.

At the same time, broad economic indicators point to cooling domestic momentum, with GDP growth slowing, core inflation near the lower end of the BoC’s target, and modest wage gains, reducing the case for higher borrowing costs.

Recent BoC communications reinforce the likelihood of a rate cut or pause, further diminishing expected returns from holding Canadian assets relative to the US.



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