Loonie expected to continue to drop: economist
Posted January 30, 2014 3:37 pm.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – Economists are predicting the loonie is going to drop even further.
A TD Bank report shows it will likely fall to 85 cents by the end of this year and won’t go back up until mid 2015 which is when it should reach 90 cents.
Economist Sonia Gulati says there are several factors.
“The Bank of Canada has changed its messaging in terms of interest rate announcements, putting downward pressure on the Canadian dollar– that’s one factor. We’re seeing a lot of strengths in the US dollar and as a result, the Canadian dollar has become a bit weaker.”
She says we haven’t seen a sustained period of relatively low currency for sometime now in Canada, certainly not since this past recession.
