Canadian greenback falls 0.2% towards the buck
Touches its weakest since February 3 at 1.4543
U.S. imposes 25% tariff on Canadian items
Two-year yield hits practically three-year low
TORONTO, – The Canadian greenback weakened to a one-month low towards its U.S. counterpart on Tuesday as traders raised bets on additional rate of interest cuts from the Financial institution of Canada after the beginning of a commerce warfare prone to badly harm 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 putting again instantly.
on Canadian items even larger, 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 strain 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.”
Buyers see a roughly 90% probability that the BoC will cut back its benchmark fee by an additional 25 foundation factors on March 12, after decreasing the speed to three% in January to assist the economic system.
Oil, certainly one of Canada’s main exports, was buying and selling 0.2% decrease at $68.25 a barrel following experiences 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.
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