The Globe and Mail reports in its Thursday edition that the Canadian dollar has tumbled to its lowest mark since the early weeks of President Donald Trump's trade war in 2025, a slide that is being driven by strong demand for U.S. dollars and a hawkish turn at the Federal Reserve. The Globe's Sophia Bertuzzi writes that the loonie has hovered just above 70 U.S. cents this week, down from a high above 74 U.S. cents in late January. It had dropped below 69 U.S. cents last year as the second Trump administration embraced protectionist trade policies that posed threats to the Canadian economy. Of late, however, the currency's weakness is largely a story of U.S. dollar strength. A resilient U.S. economy, booming American equity markets and the potential need for higher U.S. interest rates to quell inflation are pushing up the greenback. The Federal Reserve has signalled that higher interest rates may be needed to bring inflation to heel. At its June meeting, the Fed dropped language around potential rate cuts from its statement. "It's very hard to see how the Fed would cut rates in this environment as the U.S. economy remains quite resilient," said Jennifer Lee, senior economist and managing director at Bank of Montreal.