The Canadian dollar declined against the U.S. dollar on Thursday, with the loonie trading at C$1.3885 per greenback, down roughly 0.06% from the session open. The currency moved within a narrow range of C$1.3873 to C$1.3887 during intraday trading, extending losses from the previous session when it fell about 0.4% to C$1.3885.
The U.S. Dollar Index rose 0.3% for the week to 99.158, underpinning the greenback’s strength. Traders positioned ahead of Federal Reserve Chair Kevin Warsh’s remarks at the Jackson Hole symposium, where investors sought clarity on inflation persistence, borrowing costs, and the likelihood of a September rate increase.
U.S. economic data released this week added to the dollar’s support. The July Personal Consumption Expenditures Price Index, the Fed’s preferred inflation gauge, increased 3.7% year-over-year, exceeding expectations, while the monthly measure rose 0.2%. Second-quarter U.S. GDP growth was confirmed at an annualized 1.5%, reflecting modest economic expansion.
Trade frictions between the U.S. and Canada continued to weigh on sentiment. Ottawa imposed retaliatory tariffs on approximately C$20 billion of U.S. imports following the collapse of trade talks, while Washington implemented new duties on Canadian goods, reinforcing a backdrop of elevated trade uncertainty.
