US Dollar Climbs as Trade Tensions Escalate Between US and Canada
The US dollar rose to near 1.3870 against the Canadian dollar as trade tensions between the two nations continued to escalate.
Canada announced up to 50% retaliatory tariffs on $20 billion of imports from the US in response to President Trump's 50% tariffs on various Canadian goods that took effect last weekend.
Canadian Prime Minister Mark Carney stated that the country would impose its own tariffs starting September 8, CNBC reported.
The US dollar is trading 0.2% higher against the Canadian dollar ahead of the release of the US Personal Consumption Expenditures (PCE) price index for July, which is expected to remain steady at 3.3% year-over-year.
Strategists at Danske Bank noted that trade tensions have intensified and added uncertainty for businesses on both sides of the border, while also highlighting the risk of further pressure on prices and supply chains.