The foundering loonie is on the rise again. We’ll have to wait and see if the gains will last.
The Canadian dollar has gained back a sent and a half recently in what has been a nine-month slide in value against the American dollar.
One year ago today the Canadian dollar was 99 cents against the greenback.
In mid-June it was still at 98 cents. It bounced around between 94 and 98 until it slid into the 93 range in December.
A month later it was at 92 before sitting at 90 cents for 12 long days.
On March 19 it crossed back over to 89 cents, a psychologically scarring moment for any Canadian who travelled in the United States in the 1980s, 1990s or early 2000s.
The worst moment came on Jan. 21, 2002 when the Canadian dollar hit an all-time low vs the greenback of 61.69 cents
The drop in March came after Bank of Canada Governor Stephen Poloz suggested the Canadian economic outlook wasn’t great, and even worse, when he didn’t slam the door on interest rate cuts. Since higher interest rates draw money in, investors fled and the loonie shed value.
There could be more yet to come.
TD Bank has forecast that the loonie could go as low as 85 cents.
We may never again see the high water mark of $1.10 that we hit on Nov. 7, 2007, but there is some comfort in knowing there is a measure of parity with our southern neighbours.
We may not be headed south any time soon, but it’s nice to know that it won’t cost us an arm and a leg when we go.
Prince Albert Daily Herald