Loonie Down Amid Trade Talks as Crude Oil Prices Plummet

The Canadian dollar experienced a slight decline on Tuesday morning due to ongoing trade talks between Canada and the United States. The loonie dropped to US$0.7219 or US$1=C$1.3852 as of 8:33 a.m. CDT, compared to Monday's close of US$0.7224 or US$1=C$1.3842.

Meanwhile, the U.S. Dollar Index remained unchanged at 99.00 points. Canada is expected to announce countermeasures and new supports for workers on Tuesday to mitigate the economic impact of U.S. tariffs.

Crude oil prices also took a hit on Tuesday, with Brent crude retreating US$2.63 at US$89.54 per barrel, while West Texas Intermediate fell US$2.40 at US$82.61/barrel. This decline is partly attributed to warnings from U.S. Treasury Secretary Scott Bessent that countries trading with Iran will be penalized financially if they don't sever ties.