Canadian Dollar Drops as Mark Carney Unveils Investment Tax Break
Prime Minister Mark Carney introduced a capital investment tax write-off as the Canadian dollar fell for a fifth day amid U.S. rate hike fears.
The Canadian dollar declined for a fifth consecutive day on September 15, trading at 1.3915 per U.S. dollar. The currency's weakness follows investor anticipation that the Federal Reserve System will increase interest rates on Wednesday, combined with domestic data showing a 0.7% month-over-month drop in home sales for August.
Mark Carney, the Prime Minister of Canada, announced a tax measure allowing businesses to immediately write off the cost of most new capital investments to strengthen the economy in response to this uncertainty. The economic outlook is further strained by an escalating trade war between the governments of Canada and the United States.
While surging oil prices lifted Treasury yields after attacks on Saudi Arabian energy infrastructure took the East-West Pipeline offline, the Canadian dollar remained under pressure.
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