Canadian greenback falls 0.2% towards the dollar
Touches its weakest since February 3 at 1.4543
U.S. imposes 25% tariff on Canadian items
Two-year yield hits almost three-year low
TORONTO, – The Canadian greenback weakened to a one-month low towards its U.S. counterpart on Tuesday as buyers raised bets on additional rate of interest cuts from the Financial institution of Canada after the beginning of a commerce warfare more likely to badly damage Canada’s economic system.
The loonie was buying and selling 0.2% decrease at 1.4510 per U.S. greenback, or 68.92 U.S. cents, after touching its weakest intraday stage since February 3 at 1.4543.
Canadian Prime Minister Justin Trudeau informed U.S. President Donald Trump that his new 25%
tariffs on Canadian items
have been “a really dumb factor to do” and mentioned Ottawa was placing again instantly.
on Canadian items even increased, in an obvious reference to a U.S. plan to impose “reciprocal tariffs” on international buying and selling companions on April 2.
“That is solely the primary shot of the tariffs. There may be extra stress coming to bear,” mentioned Marc Chandler, chief market strategist at Bannockburn World Foreign exchange LLC. “That is going to power the Financial institution of Canada to chop charges subsequent week.”
Traders see a roughly 90% likelihood that the BoC will scale back its benchmark fee by an extra 25 foundation factors on March 12, after reducing the speed to three% in January to help the economic system.
Oil, considered one of Canada’s main exports, was buying and selling 0.2% decrease at $68.25 a barrel following stories that OPEC will proceed with a deliberate output enhance in April.
Canadian bond yields have been blended throughout a steeper curve. The two-year was down 4.1 foundation factors at 2.436%, its lowest since April 2022.
This text was generated from an automatic information company feed with out modifications to textual content.
