Loonie Weakens Amid Trade Tensions and Higher Fed Rates

The Canadian dollar has weakened against its US counterpart due to ongoing trade tensions and expectations that the Federal Reserve will maintain higher interest rates.

Trade disputes between the US and key partners, including Canada, have created uncertainty for export-driven sectors. The Canadian economy relies heavily on commodities, and any slowdown in global trade can dampen demand for oil and other resources, directly affecting the loonie.

Oil prices, a major driver of the Canadian dollar, have been volatile due to supply concerns and demand outlook. As of [date], West Texas Intermediate (WTI) crude was trading around [price], reflecting the market’s cautious sentiment.