Canadian Dollar Weakens on Trade Tensions, Oil Price Drop

The Canadian dollar weakened against the U.S. dollar on Tuesday, August 25, 2026, as escalating trade tensions between the United States and Canada and a decline in crude oil prices pressured the currency. The USDCAD exchange rate climbed for a second consecutive day, trading around the 1.3865 level, building on a rebound from a three-month low of 1.37317 reached the previous week. The primary catalyst for the currency's movement was the breakdown in trade negotiations between Washington and Ottawa over the weekend. U.S. Trade Representative Jamieson Greer stated that the U.S. had offered Canada significant concessions, but Canada continued to seek more, leading to the impasse.