Loonie’s Wild Ride: From 22-Year Lows to Tariff Relief Rally
USD Canadian Dollar Rollercoaster: The USD/CAD exchange rate went full drama mode this week, with the Canadian dollar nosediving to 68.48 U.S. cents—a level not seen since 2003—before clawing back losses on hopes of a U.S. tariff delay . Investors white-knuckled through Monday’s chaos as President Donald Trump’s weekend tariff threats sent the loonie into freefall, only to rebound slightly after Mexico scored a last-minute reprieve.
“Markets are pricing in panic and relief at the same time,” said Karl Schamotta, chief market strategist at Corpay, as the USD/CAD rate yo-yoed between 1.4793 (the day’s low) and 1.4590 . By Tuesday, traders were betting on Canada securing its own tariff pause—but not before the TSX index shed nearly 300 points and bank stocks like BNS and CIBC got dragged through the mud .
TSX Tumbles: Industrials, Banks, and Magna Take a Beating
The Toronto Stock Exchange turned into a horror show Monday. The S&P/TSX Composite Index plummeted 3% at open—its worst intraday drop since August 2024—before paring losses to close down 291 points at 25,241.76 . Sectors like industrials (-6%) and financials (-4.6% for CIBC) bled out, while auto parts giant Magna International tanked 6% on tariff jitters .
Also Read: Nvidia Stock Crashes as DeepSeek AI Emerges: $600 Billion Wiped from Market Value
“Investors are trading blindfolded here,” admitted John Zechner, equity manager at J. Zechner Associates. “When Trump’s tweets move faster than facts, logic goes out the window” . Even S&P TSX futures, which had inched up pre-market, couldn’t save the day as tariff fears overpowered optimism .
Safe Havens Surge: Gold, US Bonds in Focus as Traders Brace for Chaos
With the USD/CAD exchange rate swinging like a pendulum, Canadian traders sprinted to safety. Precious metals? Up. U.S. Treasury bonds? Hotter than TikTok trends. Gold prices soared to $2,857.10/oz, while money managers piled into recession-proof domestic stocks and cash reserves .
Also Read: XRP News Today: SEC Under Fire as Cryptocurrency XRP Surges Amid Legal Battles
“It’s a ‘protect-your-portfolio’ party,” said one Bay Street strategist. “Nobody wants to hold loonie-denominated assets when Trump’s tariffs could drop anytime” . Even oil—usually Canada’s lifeline—edged higher, but couldn’t offset the currency exchange carnage .
What’s Next for the USD/CAD Exchange Rate and TSX?
The Bank of Canada’s emergency 0.25% rate cut last week—and whispers of another cut in March—highlight the pressure on policymakers . Meanwhile, the tariff truce with the U.S. (secured after markets closed) offers temporary relief, but analysts warn the loonie remains vulnerable.
- Bank stocks (TD, CM, BNS) could rebound if tariffs stall, but uncertainty lingers .
- TSX chart patterns suggest volatility ahead, especially for export-heavy industries .
- Canada-U.S. exchange rate stability? “Don’t hold your breath,” laughs Schamotta. “This is Trump-era trading—expect plot twists” .
TNN is your hub for impactful news! We’re here to deliver concise, reliable, and engaging updates—Business news, tech updates, entertainment, and more. Explore the world with us, where every story matters. Trust the news, trust us!
At TNN, we’re glued to stories that shake markets—whether it’s the USD/CAD chaos or TD stock mood swings. Stay locked here for breaking Canada news today and US news today, where every headline hits harder than a tariff tweet.
Business, Finance, Jobs 
3 thoughts on “USD/CAD Rollercoaster: Loonie Plunges to 22-Year Low Before Tariff Deal Rescue!”