Canada Dollar Hits One-Week Low Amid Trade Uncertainty

The Canadian dollar weakened against its US counterpart on Wednesday, hitting a one-week low due to trade uncertainty and revived concerns over Canada's economic outlook.

The loonie was trading 0.4% lower at 1.3885 per U.S. dollar, or 72.02 U.S. cents, after touching its weakest intraday level since August 19 at 1.3892.

Kevin Ford, FX & macro strategist at Convera, attributed the decline to the trade dispute, saying 'The (trade) dispute has capped the currency's recent recovery by reviving concerns over exports, investment and business confidence.'

The US imposed new 50% tariffs on $20 billion of Canadian imports on Saturday after talks between the two countries collapsed. Canada retaliated with its own tariffs on about $20 billion worth of US annual imports.