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. The currency's weakness is largely a story of U.S. dollar strength. A resilient economy, booming American equity markets and the potential need for higher U.S. interest rates to quell inflation are pushing up the greenback. However, contrary to what markets are pricing in, Shaun Osborne at Scotiabank Global Banking and Markets, expects the Fed to eventually move in the opposite direction. His bank expects the U.S. economy to slow and inflationary pressures to retreat as conflict between the U.S. and Iran quiets down. "Those things combined suggest to us that rate cuts are more likely than rate increases in the U.S.," he told The Globe. Mr. Osborne said a combination of higher interest rates in Canada and lower interest rates in the U.S. would allow the Canadian dollar to pick up some ground.