Canadian Dollar Hits Seven-Week Low on Yield Spreads and Trade Uncertainty

The Canadian dollar has hit its lowest level in nearly seven weeks against the US dollar due to widening yield spreads and escalating trade uncertainty.

The loonie weakened by 0.3% to 1.4075 per US dollar, or 71.05 US cents, with its weakest intraday level since August 5 at 1.4078.

According to Kevin Ford, FX & macro strategist at Convera, 'The combination of widening rate differentials, escalating trade uncertainty and bullish technical momentum is driving USD-CAD toward fresh highs.'

The US dollar rose against a basket of major currencies as investors weighed the possibility of more interest rate hikes from the Federal Reserve.