Canadian Dollar Hits Eight-Week Low

2026-06-04 03:15 By Isabela Couto 1 min. read

The Canadian dollar weakened to 1.39 per USD in early June, its lowest level in eight weeks, as escalating trade tensions and renewed conflict in the Middle East boosted demand for the US dollar.

Tensions in the Gulf intensified after Iranian attacks on Kuwait, while US strikes near the Strait of Hormuz and limited diplomatic progress clouded prospects for a resolution.

The stronger greenback pressured major currencies broadly.

Domestically, Canada’s economy contracted at an annualized rate of 0.1% in the first quarter, following a revised 1.0% contraction in the previous quarter, highlighting persistent economic weakness.

Meanwhile, S&P Global data showed Canada’s services sector returned to modest growth in May.

However, firms reported heightened uncertainty linked to Middle East tensions, while higher fuel prices contributed to the fastest increase in operating costs in four years.



News Stream
Canadian Dollar Hits Eight-Week Low
The Canadian dollar weakened to 1.39 per USD in early June, its lowest level in eight weeks, as escalating trade tensions and renewed conflict in the Middle East boosted demand for the US dollar. Tensions in the Gulf intensified after Iranian attacks on Kuwait, while US strikes near the Strait of Hormuz and limited diplomatic progress clouded prospects for a resolution. The stronger greenback pressured major currencies broadly. Domestically, Canada’s economy contracted at an annualized rate of 0.1% in the first quarter, following a revised 1.0% contraction in the previous quarter, highlighting persistent economic weakness. Meanwhile, S&P Global data showed Canada’s services sector returned to modest growth in May. However, firms reported heightened uncertainty linked to Middle East tensions, while higher fuel prices contributed to the fastest increase in operating costs in four years.
2026-06-04
Canadian Dollar Hits 7-week Low
The Canadian Dollar touched 1.39 against the USD, the lowest since April 2026. Over the past 4 weeks, US Dollar Canadian Dollar gained 1.78%, and in the last 12 months, it increased 1.38%.
2026-06-03
Canadian Dollar Weakens on Soft GDP Data
The Canadian dollar weakened past 1.378 per USD in late May as weak economic data reinforced expectations of a dovish Bank of Canada. Canada's economy unexpectedly contracted in the first quarter of 2026 from a year earlier, marking a second consecutive quarter of annual decline and highlighting slowing domestic momentum. The data strengthened expectations that the BoC will keep interest rates unchanged, with markets broadly anticipating a hold at the June 10 meeting. Meanwhile, the Bank of Canada’s preferred core inflation measures slowed more than expected to their lowest levels in five years, signaling easing underlying price pressures outside the energy sector. The figures reinforced the central bank’s view that energy-driven inflation may prove temporary and further reduced the likelihood of additional rate hikes, weighing on the loonie.
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