Oil Slump and Trade Tensions Weigh on Canadian Dollar
The Canadian Dollar (CAD) remains vulnerable to downward pressure due to falling oil prices and escalating trade tensions between the US and Canada.
Crude oil prices have dipped to a one-week low as Saudi Arabia's recovery in shipments eases supply concerns, which has contributed to the CAD's underperformance against its American counterpart.
The US-Canada interest rate gap also remains a concern for the CAD, with the Bank of Canada (BoC) maintaining its key policy interest rate at 2.25% earlier this month, while the US Federal Reserve (Fed) hiked rates for the first time in over three years last Wednesday.
The imposition of steep 50% tariffs on approximately $20 billion worth of Canadian goods by the US and Canada's retaliatory measures have further strained trade relations between the two nations.