1516 GMT - The Canadian dollar is likely to drop even further after U.S. President Trump confirmed he would implement 25% tariffs on goods from Canada as well as Mexico, MUFG strategists forecasts in their monthly FX outlook. The Canadian currency tumbled to its lowest since 2003 overnight, reaching 1.4794 per U.S. dollar, according to FactSet, and MUFG expects it to drop to 1.52 by the end of the first quarter. "We expect this initial move to extend and our U.S. dollar forecasts suggest scope for gains through the first quarter and into the second quarter before some modest reversal by mid-year." The Canadian dollar recovers some of its steep losses for now, with USD/CAD last at 1.4687. (jessica.fleetham@wsj.com)
(END) Dow Jones Newswires
February 03, 2025 10:18 ET (15:18 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.