The Canadian dollar strengthened against the greenback on Friday, and the yield on benchmark government debt climbed. The loonie was trading 0.1% higher at C$1.4394 to the greenback, or 69.47 U.S. cents,

The Canadian Dollar (CAD) continued its soft stance on Friday, easing into familiar near-term lows and shedding one-quarter of one percent against the US Dollar. The Loonie is entering a lull period with functionally no releases on the data docket in the immediate future, leaving CAD traders to battle it out near multi-year lows.

Sylvain Charlebois, Senior Director of the Agri-Food Analytics Lab at Dalhousie University, said a weaker Canadian dollar increases the cost of imported foods, putting immense pressure on retailers to either absorb those higher costs or pass them on to consumers.

The Canadian dollar weakened against the greenback on Friday, and the yield on benchmark government debt held steady. The loonie was trading 0.2% lower at C$1.4429 to the greenback, or 69.3 U.S. cents,

Experts say the next few months are going to be rough for the Canadian dollar as it appears set to continue its downward trend.

The Canadian dollar weakened to nearly a five-year low against its U.S. counterpart on Tuesday, hurt by domestic political unrest as well as a wider gap between Canadian and U.S. bond yields after data showed a surprise easing of Canadian inflation.