The Canadian dollar has hit a two-year low against the U.S. dollar. This decline stems largely from uncertainties related to the upcoming U.S. elections. Despite strong domestic data, the Canadian dollar struggles in the foreign exchange market.
Currently, the Canadian dollar trades at 1.3950. At one point, it even hit a low of 1.3953. Over the past week, it has decreased by 0.4%. Analysts suggest that dollar bulls might push interest rates higher based on election results and trade relations.
Republican candidate Donald Trump has proposed sweeping tariffs on imports. Since Canada relies heavily on the U.S. market, sending about 75% of its exports there, these tariffs could significantly impact overall economy.
On the other hand, Canada’s manufacturing sector shows resilience. The S&P Global Canada Manufacturing PMI has reached its highest level in 20 months. This increase reflects rising production and employment due to expected order growth.
Furthermore, oil prices have risen, currently at $69.68 per barrel. Geopolitical tensions involving Iran have contributed to this increase. Additionally, Canadian bond yields are following U.S. Treasury trends.
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The Canadian dollar hits a two-year low amid uncertainties from the U.S. election, despite positive trends in manufacturing.
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