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Reuters
08-07-2025
- Business
- Reuters
Canadian dollar holds near eight-day low as U.S. tariff uncertainty weighs
TORONTO, July 8 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Tuesday but was holding near an earlier eight-day low as the prospect of additional U.S. tariffs kept risk appetite in check. The loonie was trading 0.1% higher at 1.3675 per U.S. dollar, or 73.13 U.S. cents, after touching its weakest intraday level since June 30 at 1.3694. "There's a little bit of steam (coming) out of the loonie, primarily driven by risk aversion as these tariffs have basically come back to the forefront," said Rahim Madhavji, president at U.S. President Donald Trump said he will announce a 50% tariff on imported copper on Tuesday, an effort to boost U.S. production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods. Canada is a major producer of copper and other commodities such as oil. Canada has already been hit with hefty U.S. tariffs on autos, steel and aluminum but has escaped sweeping U.S. duties imposed in April. Canadian Prime Minister Mark Carney and Trump have agreed to reach some form of a trade deal by July 21. The price of oil rose 0.8% to $68.45 a barrel as investors assessed the latest developments on U.S. tariffs and a higher than expected increase to OPEC+ output for August. Canadian economic activity expanded in June at the fastest pace in four months and price increases accelerated, Ivey Purchasing Managers Index (PMI) data showed. The seasonally adjusted index rose to 53.3 last month from 48.9 in May, posting its highest level since February. Canadian bond yields moved higher across a steeper curve, tracking moves in U.S. Treasuries. The 10-year was up 2.8 basis points at 3.430%, after earlier touching its highest level since January 16 at 3.452%.
Reuters
28-05-2025
- Business
- Reuters
Canadian dollar dips as greenback notches broad-based gains
TORONTO, May 28 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday as recent U.S. economic data bolstered the appeal of the American currency and ahead of domestic GDP data that could guide expectations for the Bank of Canada policy decision. The loonie was trading 0.2% lower at 1.3830 per U.S. dollar, or 72.31 U.S. cents, extending its pullback from a seven-month high on Monday at 1.3684. "It's a U.S. dollar story - the U.S. dollar is outperforming across the board," said Rahim Madhavji, president at "The U.S. economy is potentially doing better than some had expected." Data on Tuesday showed that U.S. consumer confidence improved in May after deteriorating for five straight months amid a truce in the trade war between Washington and China. "All eyes are looking towards the GDP data on Friday in Canada, which will obviously be a key indicator for the Bank of Canada," Madhavji said. Canadian gross domestic product data, due on Friday, is expected to show that the economy grew at an annualized rate of 1.7% in the first quarter, down from 2.6% in the previous quarter. Investors expect the BoC to leave its benchmark interest rate on hold at 2.75% at a policy decision meeting next Wednesday after recent domestic data showed underlying inflation heating up in April. The central bank paused its easing campaign last month for the first time since it began cutting rates in June. The price of oil, one of Canada's major exports, settled 1.6% higher at $61.84 a barrel as OPEC+ agreed to leave its output policy unchanged and the U.S. barred Chevron CVX.N from exporting Venezuelan crude. The Canadian 10-year yield eased half a basis point to 3.252%, while it was trading 5.1 basis points further below the equivalent U.S. rate at a gap of nearly 123 basis points.
