Loonie Takes Hit as Canada-US Trade Talks Collapse

The Canadian dollar took a hit after trade talks between Canada and the United States broke down. The loonie fell to US$0.7224 or US$1=C$1.3842 on Monday, compared to US$0.7267 or US$1=US$1.3760 on Friday.

The collapse comes after Canada withdrew from trade talks with the U.S. on Friday in response to last-minute changes that would have had a negative impact on Canada's economy and sovereignty.

This led to 50% tariffs being imposed on some Canadian goods over the weekend, further exacerbating the situation. The U.S. Dollar Index was up 0.20 of a point at 99.00.