Canadian Dollar Slips Amid Weakening Oil Prices and Interest Rate Differential

The Canadian dollar declined on Friday as investors weighed its relative value against the U.S. dollar, which held near a six-week high.

The loonie traded at around C$1.4007 per U.S. dollar, down about 0.11% from Thursday's session, according to market data.

This move keeps the Canadian currency close to levels last seen on August 7, when it touched a low of C$1.4001 per U.S. dollar.

The loonie's weakness is attributed to a widening interest-rate differential between Canada and the United States, with the Bank of Canada keeping its policy rate at 2.25% while the Federal Reserve's recent move has increased the appeal of U.S. dollar assets.