Market News

By Fergal Smith

Summary

• Canadian dollar falls 0.1% against the greenback
• Trades in a range of 1.4289 to 1.4379
• 2-year yield eases 4.5 basis points to 2.651%

TORONTO, Feb 10 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday but the move was limited as investors weighed the threat of U.S. steel and aluminum tariffs against recent upbeat data for the domestic economy.

The loonie was trading 0.1% lower at 1.4310 per U.S. dollar, or 69.88 U.S. cents, after trading in a range of 1.4289 to 1.4379.

U.S. President Donald Trump is expected to introduce new 25% tariffs on Monday or Tuesday on all U.S. steel and aluminum imports, on top of existing metals duties, in another major escalation of his trade policy shakeup.

Canada is a major exporter of steel to the United States and it accounted for 79% of U.S. primary aluminum imports in the first 11 months of 2024.
"There are meaningful consequences for both countries," Shaun Osborne, chief currency strategist at Scotiabank, said in a note.

"While tariff concerns remain paramount for policymakers right now, evidence of very firm growth momentum late last year and into Q1 suggest the Bank (of Canada) can afford to await developments