Canadian dollar hits 18-month low as France worries boost greenback
EWC•The Canadian dollar fell to an 18-month low against the U.S. dollar, trading at 1.4257 per U.S. dollar after touching 1.4293. France’s budget concerns supported the greenback, while Canadian services activity remained below the 50-point threshold in September.
1. Loonie weakens
The Canadian dollar weakened to an 18-month low against its U.S. counterpart on Monday as the U.S. dollar gained broadly. It traded 0.1% lower at 1.4257 per U.S. dollar, or 70.14 U.S. cents, after touching 1.4293, its weakest intraday level since April 2025. RBC Capital Markets’ George Davis said currency moves were largely driven by developments in Europe, where concerns about France’s ability to rein in its budget deficit weighed on the euro.
2. Economic and market factors
Canada’s services Business Activity Index rose to 48.3 in September from 46.8 in August but remained below the 50-point level that indicates no change. Oil prices fell, with U.S. crude futures settling 1.8% lower at $89.43 a barrel. Speculators’ net short positions on the Canadian dollar rose to 78,671 contracts as of September 29, from 53,210 the prior week; Canada’s 10-year bond yield increased 4.4 basis points to 3.989%.
