Canadian loonie dives to lowest level since 2004
- During 2015 the Canadian dollar — the Loonie — has lost 17 percent of its value against the U.S. dollar. Yesterday it closed below 72 cents U.S., the lowest value since the spring of 2004.
|At the present exchange rate it will cost $1.40 Canadian to buy one U.S. dollar. With service fees it will cost about $1.43. Economist at the Bank of Montreal, Doug Porter, said:|
"The only bigger annual decline was in the extreme conditions of 2008, when the Canadian dollar fell 18.6 per cent — a threshold I thought would never even be approached again."We still have well over a week to go in 2015, so we could get closer to that level.
"Obviously the economy of our largest trading partner picking up is a good thing, potentially, for Canada, but whenever there are shifts in the value [of the loonie], especially decreases, there are both challenges and opportunities."
“If you want to be an optimist, you lean on the one side that it will help boost exports.m I tend to lean more to the second side, that it reflects a degree of concern about the global economy.”Optimists hope the growing U.S. economy and lower prices for Canadian goods will over time result in considerable growth in exports, helping the Canadian economy recover from its present relatively weak performance. The high U.S. dollar may encourage more Americans to visit and shop in Canada where items may now be less expensive than in the U.S.