The Canadian dollar weakened against the greenback on Wednesday as the Bank of Canada cut interest rates to support the economy ahead of expected U.S. trade tariffs, helping to widen the gap between Canadian and U.

The Canadian Dollar lost 0.25% against the Greenback on Wednesday. The Bank of Canada cut interest rates by another 25 bps, to 3%. The BoC also announced the end of its quantitative tightening program.

The Bank of Canada delivered another interest rate cut on Wednesday, reducing its policy rate by a quarter-percentage point to three per cent. But looming U.S. tariffs are weighing on the central bank’s economic outlook.

The Canadian dollar edged lower against its U.S. counterpart on Tuesday ahead of an expected interest rate cut by the Bank of Canada and as the threat of U.S. trade tariffs drew renewed focus, leading to broad-based gains for the American currency.

The Canadian Dollar (CAD) fell back once again into familiar consolidation against the US Dollar (USD) on Monday, shedding a recently-gained one-third of one percent and continuing to send the USD/CAD pair on a sideways grind around the 1.4400 handle.