The Canadian dollar fell against the U.S. dollar on Thursday, pressured by renewed worries about the Canadian housing market. Recent economic data has fueled concerns that the housing market may be cooling, leading investors to reassess their positions in the Canadian currency.

Housing Market Data Weighs on Loonie

Analysts point to a combination of factors contributing to the Canadian dollar’s weakness. These include:

• Slowing housing starts
• Rising mortgage rates
• Government measures aimed at cooling the market

These factors have created uncertainty about the future of the Canadian housing market, prompting some investors to reduce their exposure to the Canadian dollar.

Expert Commentary

“The Canadian dollar is particularly sensitive to housing data,” said a senior currency strategist at a major bank. “Any signs of weakness in the housing market tend to weigh heavily on the currency.”

The Canadian dollar’s performance is also influenced by broader economic trends and global market sentiment. However, the housing market remains a key driver of its value.