Canadian Dollar Declines Amid Political Crisis and Tariff Threats

Investing.com -- On Tuesday, the Canadian dollar fell to its lowest level since March 2020. This situation highlights the economic challenges faced by Canada amid a climate of political uncertainty in the country.

The resignation of Finance Minister Chrystia Freeland on Monday contributed to the decline of the currency, with the Canadian dollar dropping an additional 0.4% against the U.S. dollar, surpassing the 1.43 level.

The recent political turmoil comes at a time when the Canadian economy is already lagging behind the U.S. economy.

Selected President Donald Trump's threats of tariffs have also heightened concerns, adding further pressure on the Canadian currency.

Freeland, who has served as finance minister since 2020, announced her resignation on Monday, stating that she had disagreements with Prime Minister Justin Trudeau regarding fiscal policy approaches.