The Canadian dollar declined 0.06% on Thursday, extending losses to a one-week low as traders positioned for remarks by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.
The loonie traded at C$1.3885 per U.S. dollar, roughly US$0.7202, after opening near C$1.3875 and fluctuating between C$1.3873 and C$1.3887 during the session. The currency had fallen 0.4% the previous day to C$1.3892, its weakest level since August 19.
The U.S. dollar index rose 0.3% for the week to 99.158, reflecting broader strength in the greenback. Investors are focused on Warsh’s speech, which may signal the Fed’s stance on interest rates amid recent economic data.
In the U.S., the personal consumption expenditures price index—a key inflation gauge—rose 3.7% year-on-year in July, slightly above economist forecasts. The monthly measure increased 0.2%, while second-quarter GDP growth was confirmed at a 1.5% annualized pace.
Trade frictions between Canada and the U.S. added pressure on the loonie. Ottawa imposed retaliatory tariffs on approximately C$20 billion of U.S. imports following stalled trade talks, while Washington implemented new duties on Canadian goods.
