Loonie falls on election polling, lower commodity prices

Possible Layton-led coalition “weighs on dollar”: analysts

The Canadian dollar fell more than a third of a cent from 1.0534 US to 1.0500 US on opening today after reaching a 43-month high on Friday. The slip can be partially attributed to weaker commodity prices following news of Osama bin Laden’s death. But it can also be partially attributed to the increasing possibility of an NDP-led coalition after today’s vote, say analysts. A Layton-led coalition would lead to increased spending that would “increase the risk premium on Canadian debt,” Marc Chandler, global head of currency strategy at Brown Brothers Harriman told the Wall Street Journal on Monday.

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