The Canadian dollar weakened 0.4% to 1.3885 per U.S. dollar, or 72.02 U.S. cents, on Wednesday after touching 1.3892, its weakest intraday level since August 19. The decline came as the U.S. dollar gained broadly and renewed trade tensions raised concerns about Canadian exports, investment and business confidence. The U.S. imposed new 50% tariffs on $20 billion of Canadian imports on Saturday after bilateral talks collapsed. Canada responded Tuesday with retaliatory tariffs on about $20 billion of annual U.S. imports and aid for businesses and workers. U.S. inflation data slightly increased expectations for a Federal Reserve rate hike before this week’s Jackson Hole symposium. Kevin Ford, FX & macro strategist at Convera, said a hawkish signal from Fed Chair Kevin Warsh could push USD-CAD above 1.39, although Warsh may retain a cautious communication style. Economists expected Friday’s data to show Canada’s economy grew at an annualized 3.4% in the second quarter after two consecutive quarterly contractions. Oil, a major Canadian export, edged lower as investors watched Strait of Hormuz talks between Iran and Oman amid continued shipping disruption. U.S. crude futures were down 0.1% at $82.27 a barrel. Canadian government bond yields rebounded across the curve, with the 10-year yield rising 4 basis points to 3.662% after reaching 3.614%, a near-two-week low.