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Canadian Dollar Holds Firm Despite Trump's Currency Criticism, BMO Says

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The Canadian dollar is steady around CA$1.381 per US dollar, or $0.724, early Tuesday despite President Donald Trump's latest criticism of the loonie and Canada-US trade ties, according to BMO Capital Markets in a note.

On Sunday, President Trump posted on Truth Social that "Canada's (currency) Dollar imbalance with the US is unacceptable. It has been that way for years - but no longer!"

Statistics Canada estimates the loonie's average purchasing-power-parity value at about $0.76 from 1990 to 2019, a level it last reached in 2023, said BMO.

However, exchange rates are only part of the picture, with taxes, productivity and wages also shaping trade competitiveness and making a clear advantage difficult to establish, added the bank.

Without oil exports, Canada would run a "sizeable" goods trade deficit with the US, according to BMO.

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