Canadian Dollar Depreciates Directly

 

 

The Canadian dollar has fallen against the US dollar. The value has fallen to 0.70 US dollars per Canadian dollar. This is the first time the Canadian dollar has fallen this much since the COVID-19 pandemic began in March 2020.

The Canadian dollar has fallen after Finance Minister Chrystia Freeland resigned after a disagreement with Prime Minister Justin Trudeau. The federal government had revealed a fiscal deficit of $61.9 billion for the 2023-2024 fiscal year. It also raised the deficit target by more than $20 billion. The Canadian dollar is facing depreciation in the context of the still-existing threat of US President-elect Donald Trump to impose a 25 percent tariff on goods imported from Canada. The US dollar has strengthened further since the US election in November. The depreciation is likely to be driven by political uncertainty following the sudden resignation of the finance minister from the cabinet, as well as the Bank of Canada's decision to cut interest rates, said Douglas Porter, chief economist at the Bank of Montreal.