Canadian Dollar Declines Amid Tariff Concerns

The Canadian dollar continues to weaken against the U.S. dollar, trading at approximately 1.4460 CAD per USD as concerns over impending U.S. trade tariffs mount, particularly with the inauguration of President-elect Donald Trump. The CAD has recently approached multi-year lows, reflecting investor apprehension about potential economic impacts from tariffs and a lack of supportive economic data. Analysts note that the Bank of Canada is expected to cut interest rates in response to these pressures, with the latest Consumer Price Index figures anticipated to fall below target levels. The Canadian dollar's decline is exacerbated by falling oil prices, one of Canada's key exports, which recently settled lower at $78.68 per barrel. Additionally, Canadian bond yields have decreased, signaling broader market uncertainty leading up to potential U.S. policy changes. Investors are closely monitoring the situation as the outlook for the CAD remains cautious amid these developments.