Canadian Dollar Weakens to 2-Month Lows

2026-03-24 13:58 By Felipe Alarcon 1 min. read

The Canadian dollar weakened to 1.375 per US dollar, marking fresh two month lows as a resurgent greenback and persistent geopolitical friction overwhelmed the brief relief from diplomatic efforts.

Traders grew skeptical of a de-escalation following Iranian denials of direct talks and reports that Saudi Arabia and the UAE may join the conflict against Tehran.

Although oil prices continued to rise at a more moderate pace, the ongoing attacks on US bases in the Gulf have maintained a high risk premium that complicates the inflation outlook for both the Bank of Canada and the Federal Reserve.

This heightened uncertainty has led markets to price out any Federal Reserve rate cuts for 2026 as officials now signal a much more gradual easing path limited to single quarter point reductions in 2026 and 2027.

Consequently the Loonie remains under intense pressure as the prospect of sustained high US interest rates and regional instability bolsters the greenback.



News Stream
Canadian Dollar Weakens to 2-Month Lows
The Canadian dollar weakened to 1.375 per US dollar, marking fresh two month lows as a resurgent greenback and persistent geopolitical friction overwhelmed the brief relief from diplomatic efforts. Traders grew skeptical of a de-escalation following Iranian denials of direct talks and reports that Saudi Arabia and the UAE may join the conflict against Tehran. Although oil prices continued to rise at a more moderate pace, the ongoing attacks on US bases in the Gulf have maintained a high risk premium that complicates the inflation outlook for both the Bank of Canada and the Federal Reserve. This heightened uncertainty has led markets to price out any Federal Reserve rate cuts for 2026 as officials now signal a much more gradual easing path limited to single quarter point reductions in 2026 and 2027. Consequently the Loonie remains under intense pressure as the prospect of sustained high US interest rates and regional instability bolsters the greenback.
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