Canadian Dollar Hovers Around 1-Month Lows

2026-03-02 15:53 By Felipe Alarcon 1 min. read

The Canadian dollar weakened to 1.37 per US dollar, testing one-month lows as a surge in geopolitical risk and a shrinking domestic economy triggered a move back into the US dollar.

Despite a massive 8% spike in oil prices following the closure of the Strait of Hormuz, the Loonie struggled to find support as the greenback’s safe-haven appeal dominated global markets.

Internal pressures intensified after fourth-quarter data confirmed a 0.6% contraction in Canada’s GDP, highlighting the slowest growth period since 2020.

While the February manufacturing PMI hit a 13-month high of 51, the positive data was overshadowed by fears that a prolonged Middle East conflict will disrupt 20% of global oil shipments and reignite inflation.

Even with favorable trade exemptions from new US duties, the Canadian dollar remains pinned near one-month lows as the Bank of Canada faces the difficult task of balancing high energy costs against a cooling domestic economy.



News Stream
Canadian Dollar Hovers Around 1-Month Lows
The Canadian dollar weakened to 1.37 per US dollar, testing one-month lows as a surge in geopolitical risk and a shrinking domestic economy triggered a move back into the US dollar. Despite a massive 8% spike in oil prices following the closure of the Strait of Hormuz, the Loonie struggled to find support as the greenback’s safe-haven appeal dominated global markets. Internal pressures intensified after fourth-quarter data confirmed a 0.6% contraction in Canada’s GDP, highlighting the slowest growth period since 2020. While the February manufacturing PMI hit a 13-month high of 51, the positive data was overshadowed by fears that a prolonged Middle East conflict will disrupt 20% of global oil shipments and reignite inflation. Even with favorable trade exemptions from new US duties, the Canadian dollar remains pinned near one-month lows as the Bank of Canada faces the difficult task of balancing high energy costs against a cooling domestic economy.
2026-03-02
Canadian Dollar Climbs to 2-Week High
The Canadian dollar appreciated toward 1.36 per US dollar reaching two-week highs amid a global trade pivot favoring Canada’s relative stability over US policy uncertainty. While the economy officially shrank by 0.6% in the fourth quarter, the Loonie climbed because the US Supreme Court struck down broad emergency tariffs. Although the White House responded with new Section 122 duties, these rules explicitly exempt trade-compliant goods from Canada. Furthermore, while US producer prices came in higher than expected, the US dollar remained flat as investors focused on falling Treasury yields. Canada also benefited from a recovery in oil prices toward $66 after progress stalled in nuclear talks. This combination of secured trade status and higher energy prices allowed the currency to ignore the domestic growth slump. Investors are essentially treating the Loonie as a stable alternative in a messy North American trade environment.
2026-02-27
Canadian Dollar Hits 4-week Low
The Canadian Dollar touched 1.37 against the USD, the lowest since January 2026. Over the past 4 weeks, US Dollar Canadian Dollar gained 0.11%, and in the last 12 months, it decreased 4.13%.
2026-02-24