The Canadian dollar has weakened to a nine-day low against the U.S. dollar on Friday, trading at 1.3862 per U.S. dollar, or 72.14 U.S. cents, after reaching its weakest intraday level since September 2 at 1.3883. This decline follows U.S. inflation data that supported expectations of a Federal Reserve interest rate hike next week. The loonie's weakness was attributed to rising expectations for Fed rate hikes, according to Erik Bregar, director of FX & precious metals risk management at Silver Gold Bull. U.S. consumer prices accelerated in August, with a key measure of underlying inflation posting its largest increase in four months, reinforcing the likelihood of a Fed rate increase. The Canadian dollar had benefited from a more hawkish stance by the Bank of Canada the previous week, but this week's weakness is largely driven by the U.S. dollar rallying, coupled with rising oil prices and an escalating trade war between the U.S. and Canada. Canada exports approximately 70% of its goods to the U.S., including oil, making the currency sensitive to U.S. economic and trade policies. U.S. crude oil futures were trading 2.3% lower at $100.11 a barrel on Friday, though they remained on track for a significant weekly gain. Canadian bond yields showed mixed performance across a flatter yield curve, with the 2-year yield up 1.3 basis points at 3.343%, but still trading 5.3 basis points below the U.S. equivalent, resulting in a gap of about 127 basis points. The Bank of Canada Governor Tiff Macklem recently indicated that policymakers are prepared to raise borrowing costs multiple times if inflation remains too high. Investors currently see a 57% chance that the Canadian central bank will tighten policy at its next meeting on October 28, based on swap market data. The combination of U.S. monetary policy expectations, trade tensions, and oil market dynamics has contributed to the Canadian dollar's recent decline, highlighting the interconnectedness of global financial markets and the significant influence of U.S. economic indicators on Canadian currency movements.

The Canadian dollar edged lower against the U.S. dollar on Thursday, trading at 1.3810 per U.S. dollar, or 72.41 U.S. cents, after moving within a range of 1.3801 to 1.3835. This slight decline followed a three-week high of 1.3757 reached on Tuesday, as tensions in the U.S.-Canada trade war intensified. U.S. Treasury yields climbed following strong producer price data, which increased expectations for a Federal Reserve interest rate hike next week. Simultaneously, oil prices surged to over $100 a barrel for the first time since May, driven by heightened concerns over supply disruptions due to increased attacks on shipping in the region of the Iran war. Oil, a major Canadian export, contributed to inflation worries. Senior economist Priscilla Thiagamoorthy of BMO Capital Markets noted that inflation pressures are broadening beyond energy, creating a more challenging environment for the Federal Reserve. The 2-year Canadian bond yield rose to 3.288%, its highest level since November 2024, mirroring movements in U.S. Treasuries. With U.S. consumer price data due on Friday and Canada's monthly Consumer Price Index report scheduled for Monday, market participants are closely monitoring these indicators for further insights into potential interest rate decisions. Bank of Canada Governor Tiff Macklem recently indicated that policymakers are prepared to raise borrowing costs multiple times if inflation remains too high. The combination of rising oil prices, increased inflation expectations, and potential interest rate hikes has created a complex economic backdrop for both Canadian and U.S. markets.

The Canadian dollar strengthened to nearly a three-week high against the U.S. dollar on Tuesday as investors shifted focus from escalating trade tensions between Canada and the U.S. to rising oil prices. The loonie climbed 0.2% to 1.3790 against the greenback, reaching its strongest intraday level since August 21. Canada’s retaliatory tariffs on U.S. goods took effect overnight, intensifying an 18-month-old trade war. Prime Minister Mark Carney urged a shift away from the U.S., while U.S. President Donald Trump threatened to block Bombardier’s exports unless it manufactured in the U.S. Analysts noted markets are increasingly ignoring tariffs, with the Canadian dollar remaining tied to oil prices. Recent data showed Canada lost 41,700 jobs in August, though the unemployment rate held steady at 6.4%. The Bank of Canada stated new U.S. tariffs would have limited impact, while Middle East tensions raised inflation risks. U.S. crude oil futures hit a three-month high at $94.73 amid attacks on Saudi energy facilities. Canadian bond yields rose slightly, with the 10-year note up 2.3 basis points to 3.802%.

Presidente de los Estados Unidos, Donald Trump, ha criticado públicamente a la empresa canadiense Bombardier por lo que considera un desequilibrio comercial entre ambos países. En un comunicado en su plataforma TruthSocial, Trump afirmó que el dólar canadiense es 'inaceptable' y que las empresas como Bombardier 'viven de los compradores estadounidenses, compañías, aeropuertos y servicios'. El mandatario exigió que la empresa construya sus productos en Estados Unidos si desea mantener su mercado norteamericano. Esta postura se produce en un contexto de tensiones comerciales entre Canadá y Estados Unidos, donde el gobierno canadiense ha impuesto tarifas a productos estadounidenses como medida de respuesta a las políticas proteccionistas de Trump. El primer ministro canadiense Justin Trudeau ha llamado a una cooperación bilateral, mientras que el primer ministro de Quebec, François Legault, ha expresado preocupación por el impacto de las políticas de Trump en la economía canadiense. La disputa comercial refleja un descontento mutuo entre los dos países por la percepción de desequilibrios en las relaciones comerciales. La situación ha generado debates sobre el impacto de las políticas proteccionistas en la economía global y la necesidad de un acuerdo bilateral para evitar daños a las industrias de ambos países.