Loonie Heads South
Talk about bad timing. With the March break upon us – the week when thousands of Canadians head to the U.S. for a some sun and fun – the Canadian dollar has decided to go south as well, currently trading for around 97 cents U.S.
Not only has the loonie fallen beneath 3.5 per cent this year against the U.S. greenback but it has reached levels not seen since June of last year.
Analysts blame the loonie’s decline on poor economic news, especially recent data coming out of China. With our dollar pegged so heavily to the commodity markets, the expected weak demand from China for our oil and resources is hurting our currency’s value. Plus there are a number of domestic factors, including slow GDP growth and a flat national housing market, which are placing added downward pressure on the loonie.