09:39 GMT09 July 2020
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    A mid-June decline in the value of the Canadian currency came amid ongoing tensions in Canada-US relations and an unfolding "trade war" between the two.

    The Canadian dollar (CAD) reached a three-week high on June 5 and traded for $0.76 USD per $1 CAD. According to The Globe and Mail, market optimism can be linked to a recent announcement by the Bank of Canada that the interest rate could increase after July 11.

    On June 14, the Canadian Dollar began to decline in value, dropping from $0.77 to a low point of $0.74 USD per $1 CAD on June 27. The positive trend began on June 28, with Canada's national currency reaching value of $0.75 USD per $1 CAD the next day.

    READ MORE: US Strengthens Border With Canada to Enhance Security, Safeguard Trade — DHS

    Relations between the US and Canada have been deteriorating since Washington introduced 25% and 10% tariffs on steel and aluminum respectively in a bid to "fix" the trade balance. Ottawa has responded by imposing retaliatory 10 to 20% tariffs on a range of US goods.

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    Tags:
    interest rates, markets, Canadian dollar (CAD), US dollar, United States, Canada
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