Loonie Plummets on Tariff Fears

The Canadian dollar sank to a two-month low on Monday after failed Canada-U.S. trade talks and retaliatory tariffs announced by Prime Minister Mark Carney.

The loonie dropped 0.6 per cent before settling at 72.23 cents US by 4 p.m., according to Google Finance, which translates to $1 US equaling about $1.3856 Cdn.

Market analysts attribute the decline to a 'dramatic weekend of headlines around tariffs' between the U.S. and Canada, with the Canadian dollar being punished on the prospect of more trade restrictions.