Loonie Dives as Trade Talks with US Collapse

The Canadian dollar experienced a decline over the weekend following the collapse of trade talks between Canada and the United States. The loonie dropped to US$0.7232, or approximately C$1.3827, as of 8:43 a.m. CDT on Monday, compared to its Friday close of US$0.7267 or C$1.3760.

The trade talks fell apart after Canada claimed that the U.S. made last-minute changes to its demands. In response, some Canadian goods will face a 50 per cent tariff starting September 8, with Canada matching U.S. tariffs on its own goods.

Meanwhile, crude oil prices also declined due to uncertainty surrounding new economic measures against Iran announced by the U.S. Brent crude oil retreated US$0.85 at US$93.54 per barrel, while West Texas Intermediate dropped US$1.21 at US$85.85/barrel.