Canada Dollar Slips as Narrow Win Drives ‘Market Disappointment’

The Canadian dollar slipped after a narrow federal election win for Mark Carney’s Liberal Party set the stage for more sluggish policymaking and looser fiscal spending as the former central banker pursues a mandate to fight back against US tariffs.

The loonie fell 0.1% to 1.3843 per dollar at 1:39 p.m. in New York. Carney’s party had about 43% of the national vote, but may fall short of the 172 seats needed for a majority in the House of Commons, meaning the government will need to work with others to pass budgets and other legislation instead of executing their agenda unabated.