In a surprise move, the Canadian dollar is set to fall on Monday, as the government announces that the federal budget will be released by midnight, with the currency set to drop by at least 50 per cent.
In a statement, Finance Minister Joe Oliver said the government will announce the new budget in the morning.
The move was announced after Prime Minister Justin Trudeau made the announcement.
Oliver said it was necessary to prevent “significant disruptions” to Canada’s economy as a result of a government shutdown.
The dollar fell to 78.55 US cents on Monday afternoon, down 2 per cent from the previous day.
The currency also fell in Europe.
Sterling was trading at $1.2195 per Canadian dollar, up 2.3 per cent on the day.
It fell 2.2 per cent against the euro, trading 0.4 per cent lower.
The euro was trading 0:54 after the announcement was made.
The loonie was trading down 0.8 per cent at $0.9173.
The Canadian dollar rose to 78 cents on the London Interbank Offered Rate on Monday after the government announced the budget.
It was up 0.7 per cent in the previous trading session.