# Canadian dollar edges lower as BoC cuts rates on tariff risk

> The Canadian dollar weakened against the U.S. dollar after the Bank of Canada cut its policy rate to support the economy ahead of expected U.S. trade tariffs. The loonie traded 0.2% lower at 1.4420 per U.S. dollar. The rate cut widened the interest rate gap with the Federal Reserve.

- Date: 2025-01-29 · published 2025-01-29T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/26756-canadian-dollar-edges-lower-as-boc-cuts-rates-on-tariff-risk
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Lower Canadian rates weaken the loonie, which can make Canadian canola and oat exports more competitive on world markets. The move reflects tariff risk feeding into Canadian monetary policy.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/canadian-dollar-dips-boc-rate-cut-adds-interest-rate-divergence-2025-01-29/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.