Forex
Canadian Dollar Weakens Ahead of Tariff Deadline
The Canadian dollar weakened against the US dollar on Tuesday as investors watched negotiations between Canada and Washington to prevent new tariffs from taking effect.
Prime Minister Mark Carney held discussions with US President Donald Trump, according to Carney's office. The two countries are working to secure a last-minute agreement to avoid new 50% tariffs scheduled to begin at midnight on Wednesday.
The proposed US tariffs would affect approximately $20 billion worth of Canadian imports. Strategists at Monex Europe stated that a lasting agreement could push the USD-CAD exchange rate toward 1.37, while an escalation in tensions could drive the rate back above 1.40 in the coming days.