Canadian Dollar Weakens as Energy Merger Tailwind Fades
The Canadian dollar weakened to 1.3680 per U.S. dollar as the impact of a major energy merger cooled. Markets are now awaiting a key federal fiscal update.
The USD/CAD fell 0.4% to 1.3680 as the tailwind from a $16.4B energy sector acquisition began to dissipate Tuesday. The currency retreated from a seven-week high of 1.3595 reached during the previous session. Investors are now prioritizing Canada's federal fiscal update and upcoming central bank interest rate decisions.
### Shell Acquisition Validates Energy Sector SHELL PLC, headquartered in the United Kingdom, agreed to purchase ARC RESOURCES LTD for $16.4B on Monday. Scotiabank strategists Shaun Osborne and Eric Theoret said the deal confirms the sector's appeal following policy shifts by the Canadian government.
