The Canadian dollar weakened against its U.S. counterpart as commodity prices faltered. The loonie’s performance is closely tied to the strength of commodity markets, given Canada’s significant exports of raw materials.

Several factors contributed to the currency’s decline:

• Falling Oil Prices: Crude oil, a major Canadian export, saw a decrease in price.
• Base Metals Decline: Prices for base metals, another key export category, also experienced downward pressure.
• Global Growth Concerns: Increased uncertainty regarding global economic growth dampened investor sentiment.

Analysts suggest that the Canadian dollar’s trajectory will remain heavily influenced by commodity price movements and overall global economic conditions. Further declines in commodity prices could exert additional pressure on the currency.