The Canadian dollar held near a multi-week low early Friday, trading around C$1.4149 per U.S. dollar, as a broad greenback rally and elevated U.S. Treasury yields continued to press the loonie.
USD/CAD opened near C$1.4147 and traded in a narrow band between roughly C$1.4140 and C$1.4150, up about 0.08% on the day. The currency had touched a two-month low earlier in the week before stabilizing slightly.
The U.S. dollar was on track for a second consecutive weekly gain, buoyed by surging yields and growing market expectations that the Federal Reserve will pursue further rate increases. The yield advantage over Canada remains the dominant driver, with investors pricing a relatively tighter Fed policy path relative to the Bank of Canada.
On the domestic side, weak Canadian retail sales data added to the loonie's struggles. The currency weakened through the course of the previous week even as oil prices remained elevated, underscoring that traditional support from Canada's energy exports was being overwhelmed by interest-rate differentials and U.S. dollar dynamics.
