The Canadian dollar traded nearly unchanged on Monday as investors ignored renewed U.S. tariff threats against Canadian goods. The loonie hovered around 1.3998 per U.S. dollar (≈ 71.4 U.S. cents), moving between 1.3971 and 1.4010.

Economists expect the Bank of Canada to cut interest rates again this week amid rising unemployment and a slowing economy. The central bank rate currently sits at 2.5%, a three-year low.

Chief currency strategist Adam Button noted that “the tariff threat has lost its teeth,” with markets largely unmoved by the rhetoric.

For FX service providers like KAPU Currency Exchange, the stability suggests investors are waiting for clear policy signals rather than reacting to political noise.