Canadian Dollar Falls to Lowest Level Since Early Pandemic

Economic challenges and political instability contribute to the loonie's decline below 70 U.S. cents.

The Canadian dollar has dropped to 69.78 U.S. cents, its lowest value since March 2020, reflecting a 7.46% decline since the start of the year.
The resignation of Finance Minister Chrystia Freeland, citing opposition to increased deficit spending, has added to political uncertainty in Canada.
Incoming U.S. President Donald Trump’s proposed 25% tariffs on Canadian imports are creating further economic concerns for Canada.
The widening interest rate gap between Canada and the U.S., alongside lower Canadian bond yields, is driving investors toward the U.S. dollar.
While exporters benefit from a weaker loonie, Canadian consumers and businesses reliant on imports face rising costs and economic pressures.