The Canadian dollar has had a rough period of time against the U.S. dollar, declining to a point that it hasn’t been in several years. The USD/CAD is now at 1.3951 compared to the 1.3735 that it stood at just five days ago, meaning that the loonie has lost a lot of spending power against the greenback in a very short period of time. It’s very close to the high point over the last year, less than half a penny off of the worst performance the CAD has seen in the last 52 weeks.
There’s a good chance that this momentum will continue, especially given the U.S. dollar’s renewed strength in the world markets. Economists believe that the problem is deeper than this, though, especially because of the fact that the Canadian stock market is also currently in decline. Continue reading