University of Saskatchewan Political Scientist Greg Poelzer says there is likely going to be a slight drop in the Canadian dollar with Donald Trump soon to be at the helm in the United States.
But he says the impact is going to be multi-faceted.
Canada’s dollar took a wild ride in overnight trading – while election results were coming in – shedding nearly 1.3 cents before stemming some of its losses later on.
The loonie tanked on global markets, falling as low as 73.89 cents US at around 12 a.m. ET, down 1.27 cents from Tuesday’s close.
It later regained some ground, trading at 74.34 cents US, not far off the levels it’s been at in the waning weeks of the U.S. presidential election campaign.
The S&P/TSX composite index opened at just under 14,645 points Wednesday, down a minimal 12 points from the previous close.
As well, Poelzer says those who have looked favourably on Trump’s support of Keystone Excel Pipeline – which was vetoed by the Democrats – may be overlooking one very important aspect of his messaging.
Poelzer notes Trump’s support is not “unqualified” which could see a directive from the President-elect for premiums on profits. adding a province like Saskatchewan is going to be in for a difficult four years with the Trump administration particularly around the agriculture sector.
Poelzer points to ongoing disputes around unfair country of origin labelling and other unfair trade barriers the Unites States is trying to impose on the agricultural sector, which he expects to ramp up with Donald Trump at the helm.
(With files from CJWW)