Loonie Weakens on Falling Oil Prices and Federal Reserve Anticipation

The Canadian dollar, also known as the loonie, weakened on Friday to its lowest level since July 14, slipping in response to falling oil prices and anticipation of next week's Federal Reserve rate decision.

Oil prices dropped 3.8% to $88.72 per barrel, which typically leads to fewer US dollars flowing into Canada from energy sales, weighing on the loonie.

The other major driver is the interest rates set by the Fed, with high or increasing rates making US assets more attractive and pulling money towards the US dollar, thus pressuring currencies like Canada's.