This latest bout of greenback strength is creating chaos for other currencies, including the typically stable Canadian dollar, and primarily reflects financial markets adjusting for the greater likelihood of a recession,
Analysts see the loonie weakening and crude prices still benefiting from impediments to higher global supply—a combination that could lead to more inflation.
The Canadian dollar’s strength is acting as a headwind for the country’s economic recovery, but its rally isn’t happening in isolation, as broad U.S. dollar weakness has been a trend since last spring