Canadian dollar weakens toward C$1.424 as growth stalls and yields widen

Oct 1, 2026 18:16 (23d ago)

Canadian dollar weakened toward C$1.424 per U.S. dollar as wider yield differentials, stalled growth and U.S. dollar strength pressured the loonie.
USD/CAD traded around C$1.424, valuing the Canadian dollar at roughly 70.2 U.S. cents, while August GDP rose 0.2% after July was essentially unchanged.
Bank of Canada rate-hold expectations strengthened as investors assessed U.S. labor data, Canada’s manufacturing PMI, volatile oil prices and a U.S. import ban.

The Canadian dollar weakened early Thursday, with USD/CAD trading around C$1.424 and the loonie worth roughly 70.2 U.S. cents, near its lowest level in about 12 weeks. Stalled domestic growth, a widening U.S.-Canadian bond-yield gap and a stronger U.S. dollar pressured the currency. Advance estimates showed real GDP rose 0.2% in August after being essentially unchanged in July, with mining and quarrying and retail trade gains partly offset by lower oil and gas extraction. The data reinforced expectations that the Bank of Canada will hold interest rates, while markets increased bets on further Federal Reserve rate increases. Investors also weighed volatile oil prices, a global bond-market selloff, a U.S. ban on various Canadian goods imports and upcoming U.S. and Canadian economic data.