TORONTO — A rekindled softwood lumber trade dispute with the United States pushed the Canadian dollar to its lowest level in 14 months on Tuesday.
The loonie lost 0.29 of a U.S. cent to close at 73.72 cents US, after American President Donald Trump imposed tariffs averaging at 20 per cent against Canadian softwood exports.
The last time the loonie closed below that level was Feb. 24, 2016, when it finished the day at 73.06 cents US.
Craig Jerusalim, a portfolio manager of Canadian equities with CIBC Asset Management, said the trade dispute wasn't the only reason why the loonie closed lower Tuesday.
"With oil being below $50 and gold being pressured, there's a whole host of reasons why the Canadian dollar has lagged," Jerusalim said.
He added that other protectionist measures — such as the renegotiation of NAFTA and a possible tax on Canadian dairy products — are also weighing on the loonie.
Meanwhile, the S&P/TSX composite index added 32.73 points to 15,745.19, led by the base metals sector, which added 2.23 per cent, while gold stocks retreated 4.13 per cent.
In New York, markets continued Monday's relief rally following the first round of France's presidential election.
Investors are breathing a sigh of relief now that pro-business and pro-European Union candidate Emmanuel Macron has emerged as the leading contender in a run-off election that will take place in two weeks.
The Dow Jones industrial average gained 232.23 points to 20,996.12, the S&P 500 index rose 14.46 points to 2,388.61, and the Nasdaq composite index climbed 41.67 points to a new record of 6,025.49.
In commodities, the June crude oil contract rose 33 cents at US$49.56 per barrel and the June natural gas contract rose half a cent at US$3.17 per mmBTU.
The June gold contract was down $10.30 at US$1,267.20 an ounce and the May copper contract was up three cents at US$2.58 a pound.
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Alexandra Posadzki, The Canadian Press
