The Canadian dollar experienced a decline against its US counterpart on Friday, primarily driven by anxieties surrounding the strength of the US economy. Market participants expressed concerns that a slowdown in US economic growth could negatively impact Canada, a major exporter to the United States.

Several factors contributed to the Canadian dollar’s weakness:

• US Economic Data: Recent economic data releases from the US have indicated a potential cooling of the economy, leading to investor caution.
• Market Sentiment: Overall market sentiment reflected increased risk aversion, with investors seeking safer assets.
• Commodity Prices: Fluctuations in commodity prices, particularly oil, can influence the Canadian dollar, given Canada’s status as a major commodity exporter.

Analysts suggest that the Canadian dollar’s performance will remain closely tied to developments in the US economy and global financial markets. Further weakening could occur if US economic data continues to disappoint.