Canadian Dollar Weakens Amid Escalating Trade War with US

The Canadian dollar experienced a decline against its US counterpart on Wednesday due to the escalating trade war between Canada and the United States. The loonie weakened by 0.2%, trading at C$1.3805 per US dollar, equivalent to 72.44 US cents.

The trade tensions were exacerbated by the United States' imposition of a ban on various Canadian goods, including alcoholic beverages, motorcycles, and dairy products. This move was in response to Canada's retaliatory tariffs on US goods that took effect on Tuesday.

George Davis, chief technical strategist at RBC Capital Markets, noted that despite higher crude oil prices, the pressure from new US retaliatory tariffs has weakened investor sentiment toward the Canadian dollar.