Canada’s Dollar Rises in Volatile, Trade-War Fueled Session

Canada’s dollar rose in a volatile session that saw trade war risks surge and then recede ahead of Wednesday’s Bank of Canada meeting, when policymakers are expected to lower interest rates to head off the economic threat from US levies.

The so-called loonie jumped as much as 0.4% to 1.4380, the day’s high versus the greenback, after Ontario announced it would suspend a 25% surcharge on electricity sent to the US — which subsequently prompted US President Donald Trump to say he would reconsider the doubling of levies on Canada’s steel and aluminum exports he had announced earlier in the day.