Article : Canadian Dollar Slumps After Govt Rejects BHP-Potash Bid

The Wall Street Journal, November 3, 2010

The U.S. dollar rose sharply against the Canadian unit immediately after the announcement from Industry Minister Tony Clement, rising to C$1.0123 from C$1.0049 just before the announcement. Clement said the offer did not meet the test of being a net benefit to Canada under legislation regulating foreign takeovers of Canadian companies. He also said the country remains open for foreign investment as long as transactions can meet that threshold.

The exchange rates reported here show what Canadians would pay to buy one American dollar. Transform these two exchange rates into the amount Americans would have to pay in order to buy Canadian dollars . Why did the Canadian dollar fall when the government rejected the takeover of the Potash company in Saskatchewan?