Glacier FarmMedia | MarketsFarm — The Canadian dollar was softer on Tuesday, as currency traders reacted to the latest tariff threats from the United States.
The Canadian dollar settled at US$0.6920 or US$1=C$1.4451, which compares with Monday’s close of US$0.6930 or US$1=C$1.4431.
U.S. President Donald Trump threatened to raise tariffs on Canadian steel and aluminum in reaction to a move by Ontario to impose a 25 per cent export tariff on electricity. Trump also reiterated previous comments calling for Canada to become the 51st state.
Ontario Premier Doug Ford announced later in the day that electricity tariffs would be suspended for the time being.
The Bank of Canada is scheduled to make its latest interest rate announcement on Wednesday, with most market participants expecting another cut to the overnight rate.
Crude oil was firm, with West Texas crude oil up by 0.80 per cent at US$66.56 per barrel.
The TSX Composite Index lost 132.51 points to close at 24,248.20 points.
