Canadian Dollar Slumps Amid Tariff Uncertainty

The Canadian dollar weakened against its US counterpart on Friday, hitting a nine-day low as investors questioned whether strong GDP data would sway the Bank of Canada's upcoming policy decision.

The loonie was trading 0.3 percent lower at 1.39 per US dollar, or 71.94 US cents, after touching its weakest intraday level since August 19 at 1.3908.

The currency was headed for a 1 percent decline for the week, following four straight weekly gains, after the US imposed new 50 percent tariffs on $20 billion of Canadian imports.

Economists are expecting the Bank of Canada to keep its benchmark interest rate at 2.25 percent on Wednesday and leave it unchanged for at least another year, according to a Reuters poll.