The Globe and Mail reports in its Saturday 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. Analysts believe the future of the loonie will largely depend on the outcome of U.S.-Canada trade negotiations this year. The greenback trended lower as the Fed resumed cutting interest rates and global investors started to hedge their exposure to U.S. assets in response to erratic economic policy-making in Washington. This gradual decline rapidly picked up momentum this month after Mr. Trump ramped up his threat to annex Greenland and threatened new tariffs against Europe. "Fears started to spread that the EU countries could start either reducing their [U.S.] asset base or at minimum start increasing hedges, and that contributed to some increased hedging activity throughout the marketplace," said Lorne Gavsie, head of FX strategy at CI Global Asset Management.