Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the signal from stocks about the economic outlook.

Source: https://www.marketscreener.com/news/latest/CANADA-FX-DEBT-C-notches-fifth-straight-weekly-gain-as-equities-rally--42779914/?utm_medium=RSS&utm_content=20230120

If the loonie dropped in low commodity environments, it at least made producing those commodities more competitive than in the U.S., all else equal.

Source: https://calgaryherald.com/business/local-business/le-dain-more-foreign-investment-in-our-natural-resources-could-ease-financial-burden-on-canadians

The loonie was trading 0.1 per cent lower at 1.3660 to the greenback, or 73.21 U.S. cents, after touching its weakest level since March 28 at…

Source: https://biztoc.com/x/ea97697e590dd432?ref=ff