The Canadian dollar weakened slightly to around 1.42 per US dollar in September, its lowest level in about 12 weeks, as stalled domestic growth and US dollar strength pressured the loonie. Advance estimates showed real GDP rose 0.2% in August, led by mining and quarrying and retail trade, while oil and gas extraction declined. GDP was essentially unchanged in July, ending a three-month growth streak and pointing to a weaker start to the third quarter despite matching expectations. The soft data reinforced expectations that the Bank of Canada will hold interest rates. At the same time, the US dollar advanced against a basket of major currencies as markets increased bets on further Federal Reserve rate increases, supporting expectations of a wider US-Canada interest-rate differential.