The Canadian dollar has weakened more than the Mexican peso since Trump’s inauguration, facing heightened tariff pressures. Economic analysts suggest Canada’s greater exposure and tariff retaliation may worsen its position. Meanwhile, Mexico is seen to have better negotiation leverage with the U.S.
The depreciating value of the Canadian dollar relative to the Mexican peso has drawn attention amid ongoing trade tensions since Donald Trump took office. Since Trump’s inauguration on January 20, the loonie has lost 0.5% against the U.S. dollar, compared to a 3.5% appreciation for the peso. Currently, the Canadian dollar ranks near the bottom among 16 major currencies, only above the Taiwanese dollar and South Korean won, whereas the peso is positioned eighth.
The Canadian dollar’s struggle compared to the Mexican peso reflects a more precarious economic situation given heightened tariffs imposed by the U.S. Tariff vulnerabilities have led economists to believe Canada faces a tougher negotiating landscape than Mexico. As negotiations continue, Canada’s immediate economic policies and leadership under Mark Carney will determine the future trajectory of the loonie.
Original Source: financialpost.com
