Canadian Dollar Hits 17-month Low

The Canadian dollar weakened slightly to around 1.42 per US dollar in September, its lowest level in about 12 weeks, as stalled domestic growth and US dollar strength kept the loonie under pressure. Advance estimates showed real GDP increased 0.2% in August, with gains in mining and quarrying and retail trade partly offset by a decline in oil and gas extraction. GDP was essentially unchanged in July, ending a three-month run of growth. The result was in line with expectations but highlighted a weaker start to the third quarter. Soft GDP reinforced expectations for the Bank of Canada to hold rates. The US ban on various Canadian goods imports also took effect. Meanwhile, the US dollar climbed against a basket of major currencies as markets increased bets on further Federal Reserve rate increases. Expectations for a widening US-Canada interest-rate differential are reinforcing the greenback’s advantage over the loonie.

The Canadian Dollar touched 1.42 against the USD, the lowest since April 2025. Over the past 4 weeks, US Dollar Canadian Dollar gained 2.93%, and in the last 12 months, it increased 2.01%.

The Canadian Dollar touched 1.42 against the USD, the lowest since July 2026. Over the past 4 weeks, US Dollar Canadian Dollar gained 2.5%, and in the last 12 months, it increased 1.91%.