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 almost 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 damage Canada’s financial 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 degree since February 3 at 1.4543.
Canadian Prime Minister Justin Trudeau instructed U.S. President Donald Trump that his new 25%
tariffs on Canadian items
had been “a really dumb factor to do” and stated Ottawa was putting again instantly.
on Canadian items even increased, in an obvious reference to a U.S. plan to impose “reciprocal tariffs” on world buying and selling companions on April 2.
“That is solely the primary shot of the tariffs. There may be extra stress coming to bear,” stated Marc Chandler, chief market strategist at Bannockburn International Foreign exchange LLC. “That is going to drive the Financial institution of Canada to chop charges subsequent week.”
Traders see a roughly 90% probability that the BoC will scale back its benchmark price by an extra 25 foundation factors on March 12, after reducing the speed to three% in January to help the financial 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 improve in April.
Canadian bond yields had been combined 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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