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The Canadian dollar reached a six-week low on Friday as trade tensions between the U.S. and China amplified.

The United States escalated its trade tariffs on China last week, resulting in China devaluing its currency by 10 percent as to not suffer an adverse effect on its economic growth. Global stock markets, witnessed plunges as the Dow Jones saw one of its highest historical single-day drops. 

China’s currency devaluation made its Yuan drop to its lowest point in a decade. India’s rupee also saw a significant fall, touching the INR 70 to USD 1 mark.

Canada exports many commodities, including oil, so its economy could be hurt by an escalation of trade tensions, according to the Globe and Mail.

The Canadian dollar’s six-week low on Friday was further affected by data which showed Canadian exports fell by 5.1 percent in June. This was the first drop since February.

On Friday, the currency hit its lowest intraday since June 20 at CAD 1.3265 to USD 1.

As of 9:20 am on Wednesday, August 7, the loonie is down even further to CAD 1.334 for USD 1.

Chart taken from XE Currencies

However, on the brighter side, the price of oil went up on Tuesday amid escalating trade tensions. U.S. crude oil futures were up 0.4 percent at $54.88 a barrel.

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