The Globe and Mail reports in its Saturday, Jan. 31, edition that the Canadian dollar is experiencing significant fluctuations. The Globe's Mark Rendell writes that the loonie reached over 74 U.S. cents for the first time since September, 2024, but dropped back to the mid-73-cent range after President Donald Trump announced Kevin Warsh as the new chair of the U.S. Federal Reserve, a hawkish choice that strengthened the greenback and reduced equities and gold prices. The stronger Canadian dollar, resulting from a decline in the greenback, makes U.S. imports cheaper but reduces the competitiveness of Canadian exports. Analysts believe the future of the loonie will largely depend on the outcome of U.S.-Canada trade negotiations this year. Demand for the Canadian dollar is being held back by uncertainty about the future of Canada's trading relationship with the U.S., said CIBC Capital Markets head of FX strategy Sarah Ying. And until negotiations about the continental free trade agreement are finished, the Canadian dollar may struggle to appreciate much further. Ms. Ying initially saw potential for the Canadian dollar this year, but her outlook has changed recently due to Mr. Trump's increasing negativity toward Canada.