Canada's dollar is expected to weaken 0.4% to 1.39 per U.S. dollar, or 71.94 U.S. cents, in three months, before strengthening 1.8% to 1.36 over 12 months, according to a Reuters poll of 32 foreign exchange analysts conducted from August 31 to September 2. The forecasts were revised from 1.40 for three months and 1.3660 for 12 months in the previous survey. Analysts said the currency could recover if trade tensions with the United States ease and domestic economic data improves. The United States imposed new 50% tariffs on at least $20 billion of imports from Canada after negotiations collapsed. The Bank of Canada held its benchmark interest rate at 2.25% and said the tariffs were unlikely to have a large direct economic impact, while warning that the Middle East conflict had increased upside risks to inflation. Desjardins expects the Canadian dollar to reach 1.35 by the end of next year as the U.S.-Canadian interest-rate gap narrows and investment spending in Canada accelerates. Investors expect about 100 basis points of Bank of Canada tightening by the end of 2027, potentially taking the policy rate toward the upper end of the central bank's estimated 2.25% to 3.25% neutral-interest-rate range.