Canadian Dollar Weakens for Fifth Straight Day on Rate Hike Expectations

The Canadian dollar weakened for a fifth consecutive day against its U.S. counterpart on Tuesday as investors anticipated a potential interest rate hike from the Federal Reserve.

The loonie traded 0.1% lower at 1.3915 per U.S. dollar, or 71.86 U.S. cents, marking the longest streak of losses since June.

Darren Richardson, chief operating officer at Vantry Capital Inc., attributed the Canadian dollar's weakness to the market's focus on the U.S. dollar's strength, which he believes is driven by expectations that the Fed will increase interest rates tomorrow.

The U.S. dollar was firmer across the board due to surging oil prices, which lifted Treasury yields and reinforced expectations of a rate hike.