The Canadian dollar hits its weakest level since April 2025

What happened

The Canadian dollar fell to its weakest level since April 2025, according to Bloomberg. The drop came after a reading of Canada’s labor market came in softer than expected. That reading reduced the odds that the Bank of Canada will raise interest rates.

Why it matters

When a country’s currency weakens, things priced in other currencies, such as imported goods, online purchases or tuition paid abroad, tend to cost more for people who earn in that currency. Interest rates matter too: as a general rule, higher rates make borrowing more expensive and saving more rewarding, while a lower chance of an increase eases that pressure. For a student in Canada with a part-time job or a loan, both the exchange rate and interest rates show up in the monthly budget.