Canada’s Dollar Swings on Tariff Risk as Options Point to Losses
- Options are most overpriced since 2016 as tariff risks lurk
- Analysts see the currency falling to lowest in two decades
Canadian one dollar coins, also known as loonies, fall into a container at the Royal Canadian Mint.
Photographer: Shannon VanRaes/BloombergThis article is for subscribers only.
Canada’s dollar is heading for a wild week as US President-elect Donald Trump assumes office and traders prepare for the US to impose tariffs on the country’s exports.
The currency rallied 1.2% on Monday, set for its best day since May 2023, after a Wall Street Journal report that the administration won’t introduce new measures yet. Earlier in the day, it hit the lowest since the pandemic, with the options market betting on further losses.