Investing.com — The Canadian dollar and Mexican peso may be at risk of further depreciation against the U.S. dollar should U.S. President Trump decide to implement his proposed 25% tariffs on imports from Canada and Mexico. This insight comes from Francesco Pesole, forex strategist at ING.
According to Pesole, the market has not yet fully considered the potential impact of such substantial tariffs on Canadian goods, suggesting the possibility of further declines in the Canadian dollar. He expects a rise in the exchange rate beyond the 1.45 area for the time being.
FactSet data shows the USD/CAD exchange rate rose 0.9% to 1.4442, even reaching a multi-year high of 1.4512 earlier. Similarly, the exchange rate rose 0.8% to 20.656.
These increases underscore the potential vulnerability of the Canadian dollar and Mexican peso against the U.S. dollar, especially in light of the proposed rates.
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