TORONTO (Reuters) – The Canadian dollar strengthened against its U.S. counterpart on Thursday as the Federal Reserve cut interest rates and investors grew less anxious about the prospect of tariffs disrupting Canada’s economy.
The loonie was trading 0.6% higher at 1.3860 to the U.S. dollar, or 72.15 U.S. cents, after trading in a range of 1.3851 to 1.3948.
On Wednesday, the currency posted its biggest decline since April, falling 0.8%, as investors globally reacted to the outcome of the U.S. presidential election.
Republican President-elect Donald Trump has proposed sweeping tariffs on imported goods. Canada sends about 75% of its exports to the United States, including oil.
“We’re in the post-election mode where the market says that Trump didn’t really mean it when it came to tariffs,” said Adam Button, chief currency analyst at ForexLive.
“In any election…
