Canadian Dollar Surges on Tariff Delay and Weakening US Dollar

The Canadian dollar has reached a two-and-a-half-month high against its US counterpart due to broad weakness in the US dollar and the temporary avoidance of new US tariffs on Canadian exports.

US President Donald Trump announced a three-day suspension of the 50% tariffs that were scheduled to take effect at midnight, citing an agreement between the two countries.

The Canadian dollar gained 0.5% to C$1.3823 per US dollar, or 72.34 US cents, marking its strongest level since June 2.

Monex Europe analysts noted that the suspension of tariffs has provided the Canadian dollar with temporary breathing room, but whether this improvement can be sustained will depend on the outcome of negotiations over the coming days.