The Globe and Mail reports in its Wednesday edition that the Canadian dollar weakened to nearly a five-year low against its U.S. counterpart on Tuesday to below 70 U.S. cents, hurt by domestic political unrest as well as a wider gap between Canadian and U.S. bond yields after data showed Canadian inflation under 2 per cent. A Reuters dispatch to The Globe says that on Tuesday the loonie traded 0.6 per cent lower at 69.82 U.S. cents. The abrupt resignation of Canada's Finance Minister leaves the government adrift less than a month before the inauguration of a second Trump administration that could impose crippling sanctions on Canadian exports. "Canadian politics rarely (if ever, in my recent memory) spill over into the FX markets in a significant way. But development sin Ottawa are clearly adding to deadweight on the CAD right now," Shaun Osborne, chief currency strategist at Scotiabank, said in a note. Scotiabank adjusted its forecasts for the Canadian dollar in the wake of the U.S. election, expecting the loonie to reach 68.9 U.S. cents in the second half of next year. "Now, however, developments at home have increased the risk that we get there a lot sooner," Mr. Osborne said. "Time is very much of the essence now."