Canadian Dollar Hits 10-Week Low as US Yield Advantage Widens

The Canadian dollar has been slipping against its US counterpart, USD/CAD, as the widening gap between Canadian and US bond yields continues to favor the greenback. The pair traded around C$1.4150 in early dealings on Monday, up roughly 0.06% for the session.

The loonie is now trading close to its weakest levels in about 10 weeks, with USD/CAD moving between approximately C$1.4142 and C$1.4165 after closing the previous session near C$1.4141.

The Canada-US yield gap is one of the biggest forces working against the Canadian dollar, with the spread between Canadian and US two-year government bond yields having widened to around 153 basis points by Friday - its widest gap since February 2025.