Canadian Dollar Holds Near Monthly Lows

2026-02-23 13:56 By Felipe Alarcon 1 min. read

The Canadian dollar weakened toward 1.37 per US dollar on Monday, hovering near monthly lows as global markets balanced a swift pivot in US trade policy against a softening domestic inflation outlook.

While the loonie initially rose after the US Supreme Court struck down previous emergency duties, the rally evaporated as President Trump invoked Section 122 to impose a new 15% global surcharge.

This trade friction re-established a major headwind for Canada's export-heavy economy just as January CPI data showed inflation cooling to 2.3%, raising bets that the Bank of Canada may soon abandon its 2.25% pause.

The currency faced further pressure from a resilient greenback, supported by hawkish signals from incoming Fed leadership and US core PCE holding at 3%.

Even with a modest firming in oil prices, the loonie remained on the defensive as the narrowing of Canada's yield advantage and renewed protectionist risks outweighed the brief optimism of the landmark court ruling.



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Canadian Dollar Holds Near Monthly Lows
The Canadian dollar weakened toward 1.37 per US dollar on Monday, hovering near monthly lows as global markets balanced a swift pivot in US trade policy against a softening domestic inflation outlook. While the loonie initially rose after the US Supreme Court struck down previous emergency duties, the rally evaporated as President Trump invoked Section 122 to impose a new 15% global surcharge. This trade friction re-established a major headwind for Canada's export-heavy economy just as January CPI data showed inflation cooling to 2.3%, raising bets that the Bank of Canada may soon abandon its 2.25% pause. The currency faced further pressure from a resilient greenback, supported by hawkish signals from incoming Fed leadership and US core PCE holding at 3%. Even with a modest firming in oil prices, the loonie remained on the defensive as the narrowing of Canada's yield advantage and renewed protectionist risks outweighed the brief optimism of the landmark court ruling.
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