Overview
The Reuters article dated 19‑06‑2026 reports that the Canadian dollar fell to a 14‑month low against the U.S. dollar, trading at 1.4135 per U.S. dollar (70.75 U.S. cents), a 0.3 % decline, after reaching an intraday trough of 1.4146, the weakest level since April 2025.
Drivers
The depreciation followed the Federal Reserve’s indication of a more aggressive interest‑rate‑hike path, which widened the yield differential between U.S. and Canadian 2‑year bonds to 137 basis points—the widest spread since May 2025—after Canada’s 2‑year yield fell an additional 3.1 basis points below its U.S. counterpart. Karl Schamotta, chief market strategist at Corpay, noted that “every major currency is down against the greenback as traders ignore domestic developments and follow rate differentials.”
Additional Factors
Falling oil prices, a key Canadian export, contributed to the loonie’s weakness; oil slid to its lowest level since before the Iran war in February, after an interim agreement to end hostilities, reopen the Strait of Hormuz, and ease sanctions on Tehran improved global supply outlook. Trade uncertainty was also cited.
Political Comment
U.S. President Donald Trump stated that the United States would be better off without the United States‑Mexico‑Canada Agreement (USMCA) and expressed openness to a new trade arrangement.
Publication Note
The article was generated with AI assistance and reviewed by an editor, as indicated in the Reuters disclaimer.