The Canadian dollar hit a new low not seen since April 2025 after a disappointing jobs report weakened expectations for a Bank of Canada interest rate hike. The loonie dropped as much as 0.5% against the US dollar on Friday, reaching 1.4299 per dollar, its weakest point since last year’s tariff announcement by US President Donald Trump.
Canadian bonds rallied in response, driving two-year yields down to a one-month low. The labor market data showed a significant decline, with employment falling by 68,300 last month, reversing earlier gains made this year.
The softer-than-expected jobs report reduced the likelihood of a rate increase, putting downward pressure on the Canadian dollar. Investors reacted swiftly, pushing the currency to its lowest level in over a year and a half.