Forex
Trump Slams Canadian Dollar Imbalance as Trade Tensions Escalate
US President Donald Trump has criticized the exchange-rate gap between the Canadian and US dollars, calling it 'unacceptable'. The imbalance has been in place for most of the past 15 years, with the long-term average standing at about $1 to 1.24 Canadian dollars.
The Canadian dollar has mostly traded between C$1.20 and C$1.45 against the US dollar since 2015. It reached parity only during part of the 2007-2012 commodity boom, when it was stronger than the US dollar.
A weaker Canadian dollar makes Canadian goods cheaper for US buyers and US goods more expensive for Canadian consumers. Trump has repeatedly criticized the trade gap with Canada amid an ongoing trade war between the two neighbors.