Loonie Dips as Trade Tensions Escalate, Oil Prices Fall

The Canadian dollar experienced a slight decline on Tuesday morning due to ongoing trade tensions between Canada and the United States. The loonie was valued at US$0.7219 or US$1=C$1.3852 as of 8:33 a.m. CDT, compared to Monday's close of US$0.7224 or US$1=C$1.3842.

The decline in the loonie comes as Canada prepares to announce countermeasures and new supports for workers to mitigate the economic impact of U.S. tariffs. The U.S. Dollar Index remained unchanged at 99.00 points.

Crude oil prices also continued to fall on Tuesday, with Brent crude oil retreating US$2.63 at US$89.54 per barrel and West Texas Intermediate falling US$2.40 at US$82.61/barrel. The drop in oil prices was attributed to a warning from U.S. Treasury Secretary Scott Bessent that countries trading with Iran would face financial penalties if they didn't sever ties.