Canadian Dollar Strengthens on Expanding Trade Surplus

The Canadian dollar strengthened on Tuesday, supported by an expanding trade surplus. The currency ended the day at US$0.7029, or US$1 = C$1.4226, up from US$0.7016 (US$1 = C$1.4254) the previous day.

Canada's merchandise trade surplus grew to C$4.2 billion in August, up from C$787 million in July. This increase came as exports rose by 2.5% while imports fell by 2.0%, according to Statistics Canada.

Exports to the U.S. surged ahead of new tariffs, reaching C$11.2 billion from C$6.1 billion. Meanwhile, Canadian imports of U.S. goods decreased by 2.5%. Service exports also saw a 0.7% increase to C$21.1 billion, while imports dropped by 0.4%, widening the services trade surplus to C$400 million from C$200 million.

West Texas Intermediate (WTI) crude oil prices rose by 0.3% to US$89.74 per barrel. The TSX Composite Index also gained 130.96 points, closing at 35,649.51 points.