Canadian dollar rises as Trudeau win clears path for economic support
CTV
The Canadian dollar strengthened against its U.S. counterpart in Asian trading on Tuesday as oil prices rose and a projected election win for Justin Trudeau's Liberal party reassured investors that economic support would continue.
Trudeau's Liberals were on track to win the Canadian election, but they looked set to fall short of their goal for a majority win.
"This does look like a decisive win for the Liberals that essentially preserves the status quo and ensures that the fiscal spending plans that have supported the economy for the last year and half are likely to continue," said Karl Schamotta, chief market strategist at Cambridge Global Payments.
Foreign investors had worried that the election could result in a deadlock that would hamper Ottawa's response to the COVID-19 pandemic and further slow the economic recovery from the crisis.
"The more supportive fiscal policy is, the more likely the Bank (of Canada) is able to move from tapering to rate hikes in the next year and a half," Schamotta said.
