Canadian Dollar Dips Amid Tariff Uncertainty and Hawkish Fed Comments

The Canadian dollar weakened to a nine-day low against its US counterpart on Friday, trading 0.3% lower at 1.39 per US dollar or 71.94 US cents.

This comes after the US imposed new 50% tariffs on $20 billion of Canadian imports, leading to a 1% decline in the currency for the week.

Canada's economy grew at an annualized rate of 3.3% in the second quarter, but economists say this may not be enough to sway the Bank of Canada's decision on interest rates.

According to Douglas Porter, chief economist at BMO Capital Markets, 'there's not a lot to seriously move the needle' for the BoC, and it will likely wait to see how the economy handles the latest tariff spat before making any decisions.