1037 GMT - The Canadian dollar could extend recent declines as the Bank of Canada turns its focus to potential U.S. trade tariffs, Commerzbank's Michael Pfister says in a note. Tariffs would have a significant impact on Canada's economy, he says. The currency could remain under pressure until an agreement is reached with President Trump. The BOC said tariff threats were a major source of uncertainty as it cut interest rates by a widely-expected 25 basis points Wednesday. It also lowered growth forecasts but raised its inflation outlook for the next two years. "Higher inflation and lower growth is not a good combination for the Canadian dollar." USD/CAD falls 0.1% to 1.4411 after hitting a one-week high of 1.4474 Wednesday, according to FactSet. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
January 30, 2025 05:37 ET (10:37 GMT)
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