The Canadian dollar has had a rough month, and this week it touched a level we have not seen since April 2025, sliding to roughly C$1.42 per US dollar. If you live in one currency, that is a headline you can scroll past. If you live in two, it is a decision.

If you want this reflected in how a portfolio is built, see our cross-border investment management service.

Why the loonie is under pressure

Three forces pushed in the same direction at once. First, the widening gap between the Federal Reserve and the Bank of Canada, where higher US yields pull money toward the US dollar. Second, oil down roughly 10% on the week, and because Canada is a major energy exporter, crude and the loonie often travel together. Third, a softer gold price, which tends to weigh on the currency as well. The loonie also slipped below both its 50-day and 200-day moving averages, which tells you this is a trend, not a one-day blip.

What a weak loonie actually costs you

This is where it stops being abstract. A weaker loonie quietly raises the Canadian-dollar cost of US tuition for kids at American schools, US property and its carrying costs, US medical bills, and the everyday spending of snowbirds. Every one of those just got more expensive. The flip side is real too: if you hold US investments or earn US-source income, those are now worth more when you bring them home. A weak loonie is not all bad. It just rewards a plan and punishes a panic.

The playbook

Do not try to call the bottom. A broken clock is right twice a day, and currency timing is a fast way to feel smart once and wrong often. Here is the framework we use instead.

1. Match currency to need. Decide what currency the money is for before you convert anything. Dollars you will spend in the US should live in US dollars. Dollars you will spend in Canada should not be sitting in a US account you will have to convert back.
2. Stage your conversions. Convert in tranches rather than one lump sum. Think of it as double Dutch skipping into the market, the same logic as dollar-cost averaging. You give up the chance to nail the perfect rate in exchange for never converting your whole balance at the worst one.
3. Hold a US-dollar cushion. If you have known US-dollar expenses coming, keep a buffer in US dollars so a weak loonie on the wrong week does not force your hand.
4. Separate needs from wants. Fund the needs first, the tuition and the medical and the mortgage, and let the wants wait for a friendlier rate. The needs cannot be timed. The wants can.

None of this requires a forecast. That is the point. A cross-border plan treats the exchange rate as a structural input you manage, not a number you refresh and react to every morning.

If you have a tuition bill, a US closing, or a snowbird budget on the horizon, this is exactly the moment to map out a conversion plan rather than improvise one. We are happy to build it with you.

Frequently Asked Questions

How low is the Canadian dollar right now?

This week the loonie traded around C$1.42 per US dollar, its weakest level since April 2025, and below both its 50-day and 200-day moving averages.

Why is the Canadian dollar falling?

Three reasons lined up at once: the widening US-Canada interest-rate gap, a roughly 10% weekly drop in oil, and a softer gold price. All three tend to weigh on the loonie.

Should I convert all my Canadian dollars to US dollars now?

Rarely a good idea to convert everything at one moment. Convert what you actually need in US dollars, and stage the rest over time rather than betting on a single exchange rate.

I am a snowbird. How does a weak loonie affect me?

It raises your US cost of living in Canadian-dollar terms, from property to groceries to medical. Holding a US-dollar buffer for known expenses helps you avoid converting at the worst possible moment.

Will the loonie recover?

No one knows, and anyone who says they do is guessing. The currencies move on rate gaps, oil, and risk sentiment. The goal is to plan around the range, not predict the turn.

Is this financial advice?

No. This is general information about managing currency in a cross-border plan. See the disclaimer below and speak with an advisor about your own circumstances.

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Sources: Raymond James, “the Open” (subscription client newsletter, no public URL) | FXStreet (https://www.fxstreet.com/news/canadian-dollar-languishes-near-april-2025-low-as-weak-retail-sales-and-lower-oil-prices-weigh-202606191409) | The Globe and Mail (https://www.theglobeandmail.com/investing/article-canadian-dollar-keeps-on-tumbling-hitting-14-month-low-as-yield/) | Bloomberg (https://www.bloomberg.com/news/articles/2026-06-18/bank-of-america-says-canada-to-hold-rates-through-2027-despite-weak-loonie) | Bank of Canada (daily rates) (https://www.bankofcanada.ca/rates/exchange/daily-exchange-rates/)

This article is for general informational purposes only and reflects market conditions as of June 22, 2026. It is not investment, tax, or legal advice, and it does not account for your personal circumstances. Sartorial Wealth specializes in cross-border financial planning between Canada and the United States; we do not prepare tax returns. Markets and currency levels move quickly, and the figures cited may have changed since publication. Please speak with a qualified advisor before acting on anything here.