The Canadian dollar weakened for a third consecutive week, reaching a fresh low of more than one month on Friday and trading around 1.41 per US dollar in September. Market participants said the widening divergence between US and Canadian monetary-policy paths has increased the interest-rate differential, supporting the US dollar against the loonie. Expectations that the Federal Reserve will continue tightening while the Bank of Canada keeps rates steady have reinforced that advantage. The Fed raised its federal funds target range at its latest meeting, while the Bank of Canada left its key policy rate unchanged at 2.25% in September. Higher oil prices are adding to Canadian inflation pressure, although economic slack linked to trade tensions with the US could counteract that effect. Canadian retail sales were estimated to have risen 1.3% month over month in August after falling in July, which would be the strongest increase since January and could indicate resilient domestic demand.