The Financial Post reports in its Wednesday edition that the loonie remained stable against the U.S. dollar after Mark Carney's Liberal party won a narrow election victory, trading at $1.3828 per U.S. dollar. A Bloomberg dispatch to the Post reports that analysts warned of potential currency weakness amid tricky talks ahead. Citigroup analysts suggested the loonie could drop to $1.45 if U.S. trade tensions escalate. MUFG highlighted long-term risks from U.S. trade restrictions, potentially leading the Bank of Canada to cut interest rates. Francesco Pesole from ING noted that Mr. Carney's thin Parliament majority and his tough stance on tariffs could complicate trade discussions. Despite an approximately 4-per-cent gain against the U.S. dollar this year, the loonie's advances are smaller compared with other currencies in the Group of 10. Mr. Carney's party had about 43 per cent of the national vote, but is likely to fall short of the 172 seats needed for a majority in the House of Commons, meaning the government will need to work with others to pass budgets and other legislation. Mr. Carney is tasked with helping the economy pivot to a new era that will likely be less dependent on the U.S., its biggest trading partner.