Loonie Threatens to Fall Below 72 Cents Amid Tariffs and Oil Price Drop

The Canadian dollar weakened on Wednesday morning, potentially falling below $0.72 US per dollar.

As of 8:38 a.m. CDT, the loonie stood at $0.7202 or $1=C$1.3885, down from Tuesday's close of $0.7226 or $1=C$1.3839.

The US Dollar Index rose by 0.21 points to 99.13 points.

Canada's retaliatory tariffs on US goods worth $27.6 billion are set to take effect on September 8, with an additional $7.5 billion in financial support for affected workers also being provided.

Crude oil prices continued their downward trend due to a proposed joint shipping lane in the Strait of Hormuz between Iran and Oman, as well as efforts to clear mines from the waterway.