The Canadian dollar declined against the U.S. currency on Thursday, reflecting a stronger greenback and cautious trading ahead of Federal Reserve remarks at the Jackson Hole symposium.
The loonie was down about 0.06% at C$1.3885 per U.S. dollar, equivalent to roughly 72.02 U.S. cents. The currency opened near C$1.3875 and fluctuated between C$1.3873 and C$1.3887 during the session. On Wednesday, the Canadian dollar fell 0.4% to C$1.3885 after briefly touching C$1.3892, its weakest level since August 19.
The U.S. dollar index rose to 99.158, up about 0.3% for the week, as traders monitored U.S. economic data and the Federal Reserve’s policy trajectory. July’s personal consumption expenditures price index increased 3.7% year over year, while the monthly measure rose 0.2%. U.S. second-quarter economic growth was confirmed at an annualized 1.5%.
Market focus shifted to remarks by Federal Reserve Chair Kevin Warsh, scheduled for delivery at the Jackson Hole symposium. The loonie’s movement also followed renewed trade tensions between Canada and the United States. Ottawa imposed retaliatory tariffs on approximately C$20 billion of U.S. imports after trade negotiations with Washington broke down. The U.S. had previously imposed new tariffs on Canadian goods, escalating bilateral trade friction.
