The Canadian dollar opened on Monday down, and fell to its lowest levels in more than two decades, Given the imminent entry into force of 25 % of the United States against Canadian imports.
The value of a Canadian dollar fell to 68.13 cents of a US dollar, shortly after the opening of the markets after closing 69.04 cents on Friday.
The ‘Loonie’, as the Canada dollar is popularly known, was not so low since 2003.
The fall is a direct consequence of the incipient trade war between the United States and Canada, caused by the decision of the US PresidentDonald Trump, to impose 25 % tariffs on all Canadian imports, except those of oil and gas that will be taxed with 10 %.
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American taxes will take effect on Tuesday. In response, Canada has announced that it will tax with 25 % tariffs at 155 billion dollars of imported products from the US.
Economists have warned that Trump’s tariffs They can cause the Canadian economy to enter recession and lose hundreds of thousands of jobs.
In this sense, the Bank of Montreal (BMO) said Monday that the Bank of Canada will implement six consecutive cuts of a quarter quarter each to interest rates in response to the possible commercial war.
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If these cuts occur, interest rates will fall to 1.5 % in October this year. At the moment, the types are in 3 %, after six consecutive reductions since June 2024.
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