Canadian Financial Close: C$ up as Trumps backs off tariff threats

Glacier FarmMedia | MarketsFarm — The Canadian dollar was stronger Monday, as Donald Trump backed away from imposing tariffs on Canadian imports as he had threatened in the lead up to his inauguration.

The Canadian dollar settled at US$0.6978 or US$1=C$1.4330 on Monday, which compares with Friday’s close of US$0.6928 or US$1=C$1.4435.

Donald Trump was sworn in as President of the United States on Monday but stopped short of imposing immediate import tariffs. Rather, he was reportedly directing federal agencies to study trade policies.

Uncertainty over what Trump’s policies and resulting retaliation will mean for the global economy remains to be seen, keeping caution in the currency markets. Activity in the U.S. was subdued, with markets closed for Martin Luther King Jr. Day.

West Texas crude oil was down 1.27 per cent at US$76.89 per barrel.

The TSX Composite Index gained 103.66 points to close at 25,171.58 points.