Canadian Loonie Falters Under Pressure from US Dollar Rally

The Canadian dollar has been struggling to maintain its value in recent weeks, and it showed no signs of improvement on Friday. The loonie held near a multi-week low as a broad U.S. dollar rally continued to put pressure on the currency.

At around 8:54 a.m. ET, the Canadian dollar was trading at C$1.4149, up about 0.08% from the previous day. However, this increase was not enough to offset the negative trends that have been affecting the currency in recent weeks.

The U.S. rate market has been driving the strength of the greenback, with surging Treasury yields and expectations of further Federal Reserve rate increases boosting demand for the dollar.

The Canadian dollar's usual support from Canada's energy exports appears to be outweighed by interest-rate and U.S. dollar dynamics, which is why it has struggled despite elevated oil prices.