Canadian dollar rebounds from 22-year low on hopes of reprieve from US tariffs | Stock Market News
Source: Live Mint
The Canadian dollar rebounded from its 22-year low against the US dollar on Monday on hopes of Canada achieving a reprieve from US tariffs.
The Canadian currency was trading 0.5% lower at 1.4590 to the US dollar, or 68.54 US cents, after earlier tumbling to its weakest level since April 2003 at 1.4793.
US President Donald Trump said that he had spoken with Canadian Prime Minister Justin Trudeau and would do so again at 3 p.m. ET (2000 GMT).
However, Canada is not optimistic it can get the same kind of one-month reprieve from US tariffs that was granted to Mexico, the New York Times reported citing a senior Canadian government official.
Trump has paused new tariffs on Mexico for one month after Mexico agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal drugs.
On Saturday, the US imposed sweeping25% tariffs on goods fromCanada and Mexico, along with a 10% levy on China.
In retaliation, Trudeau said Canada would respond with 25% tariffs against $155 billion of US goods.
Last week, the Bank of Canada had warned that a tariff war could cause major economic damage as it cut its benchmark interest rate by 25 basis points to 3%.
Canadianstocks
Canada’s main stock index fell sharply on Monday after Trump’s tariffs on Canada.
The S&P/TSX composite index was down 1% at 25,263.92.
Among sectors, industrials fell 1.5%, with business jet exporter Bombardier tumbling over 8%. Shares of Canadian auto parts makers also sank; Magna International fell 6.5% and Linamar 4.4%.
Shares of alternative financial services company goeasy tumbled about 11%, contributing to the heavyweight financials sector falling 1.7%.
Powersports vehicles maker BRP slid 6.5% to its lowest since 2020, bringing down consumer discretionary sector 1.8% lower.
Healthcare fell 2.1%, the biggest sectoral loser on the index.
Canadian bond yields dropped across the curve. The 10-year yield was down 13.6 basis points at 2.929%.
