Canadian dollar reaches lowest point since 2003

(MENAFN) The Canadian dollar reached its lowest value since March 2003 on Monday after the United States imposed a 25 percent new tariff on imports from Canada. This move by the US government has caused significant pressure on the Canadian currency, triggering a notable decline in its value. The exchange rate for US dollar to Canadian dollar was recorded at 1.4682 Canadian dollars at 1300GMT, highlighting the sharp depreciation.

In addition to the USD/CAD exchange rate, the Canadian dollar index fell to 68.84, reflecting broader weakness in the currency. The impact of the new tariffs has rippled through the global foreign exchange markets, influencing trading between the Canadian dollar and other major currencies. The EUR/CAD exchange rate stood at 1.5042 Canadian dollars, while the GBP/CAD exchange rate was recorded at 1.8102 Canadian dollars, showing the extent of the Canadian dollar’s depreciation against the euro and British pound.

The 25 percent tariffs on Canadian imports are part of a broader strategy by US President Donald Trump, who also imposed tariffs on imports from Mexico and China. Mexico faced a 25 percent tariff, while China saw a 10 percent tariff on its goods. These measures have escalated trade tensions globally, contributing to market instability and currency fluctuations.

As the tariffs take effect, the Canadian economy faces considerable pressure, with the currency’s decline affecting trade relationships and the broader economic outlook. The US tariffs are expected to have long-term consequences on Canada’s export-driven economy, particularly in sectors like energy, automotive, and agriculture.

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