Canadian Dollar Struggles Near Multi-Week Lows Amid US Strength
The Canadian dollar struggled to break free from its recent lows on Friday as the stronger US dollar continued to exert pressure. Trading near C$1.4149 at around 8:54 a.m. Eastern Time, the USD/CAD pair was up about 0.08% for the day.
This trend of Canadian dollar weakness has persisted throughout the week, with broad US dollar strength and weak Canadian retail sales weighing on sentiment. The currency touched a two-month low earlier in the week, and it remains under pressure despite higher oil prices.
The recent move can be attributed to rising US Treasury yields and expectations for further Federal Reserve interest rate hikes. This has boosted demand for the US currency and maintained the US yield advantage over Canada at the center of foreign exchange trading.