Canadian Dollar Reaches Historic Lows Amid Ongoing US Dollar Strength

The Canadian dollar has traded down to levels not seen since the COVID-19 pandemic and Tariff Day, reaching as low as 70 cents on the US dollar. According to Craig Basinger, Chief Market Strategist at Purpose Investments Inc., this is a result of US dollar strength, which has been a persistent trend since Kevin Warsh was confirmed as Federal Reserve Chair in May 2026.

The Canadian dollar weakness can be attributed to various factors, including oil prices, which have fallen from $92/bbl to $70/bbl, and gold prices, which have dropped from $4,500/oz. to just below $4,000/oz. Additionally, two-year government yields in Canada have decreased, while US Treasury 2-year yields have increased.

However, Basinger notes that the US dollar's rise is not a Canadian problem, but rather a result of broader market trends. The Japanese yen has also weakened against the US dollar, reaching its lowest value in decades, and the euro has recently lost strength as well.