Concerns that today’s election will lead to weakening the ruling Conservative party undermined the Canadian dollar. The decline of crude oil, main Canada’s export, drove the currency further down.

Prime Minister Stephen Harper’s Conservative minority government is considered successful by many analysts and its weakening or removal from power may reduce markets’ confidence in the Canadian economy and currency. The New Democratic Party may receive enough votes to deny the Conservatives majority. Currently polls show that the Conservatives have 37 percent of votes, the NDP has 32 percent and the Liberals have 21 percent.

Economists are also concerned what impact the election will have on the oil production in Canada. Meanwhile, futures on crude oil fell 0.8 percent to $112.99 per barrel, following the decline by 2.7 percent to $110.82.

USD/CAD traded at 0.9498 as of 1:49 GMT today, following the advance from 0.9446 to 0.9504 yesterday. EUR/CAD traded at 1.4051 and CAD/JPY traded near 85.30.

If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.