Trade Tensions Weigh on Canadian Dollar Amid US Treasury's Interventionist Signal

The Canadian dollar weakened 0.5% to $1.3836 per US dollar after Washington imposed 50-per-cent tariffs on Canadian goods, with Canada retaliating in kind.

Trade tensions weighed on the Canadian dollar, while the US dollar hovered near multi-month lows due to the U.S. Treasury's promise to buy back more long-dated bonds and uncertainty over sanctions on Iran.

The size of the interventionist signal is paltry in a market worth $32-trillion, but it spooked traders and hit the dollar.