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Canadian dollar hits low amid political crisis, tariff threats

Published 2024-12-17, 11:14 a/m
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Investing.com -- On Tuesday, the Canadian dollar dropped to its weakest point since March 2020, highlighting the economic challenges Canada faces as political uncertainty grips the nation.

The resignation of Finance Minister Chrystia Freeland on Monday has contributed to the currency's decline, with the loonie falling an additional 0.4% to pass the 1.43 mark against the US dollar.

The recent political upheaval comes at a time when Canada's economy is already struggling to keep pace with that of the United States.

Concerns have been further compounded by the looming threat of tariffs from President-elect Donald Trump, which has put additional pressure on the Canadian currency.

Freeland, who had been serving as finance minister since 2020, resigned on Monday, citing disagreements with Prime Minister Justin Trudeau's approach to fiscal policy.

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