The Canadian dollar has not been this low, compared to the US dollar, since August 2004, falling to 75.27 US cents by the end of the trading day. The last day the loonie closed below 76 cents was just three weeks ago, on August 4, but today’s drop is lower still.
According personal finance expert Rubina Ahmed-Haq, the prognosis for the Canadian dollar is not rosy.
“Their U.S. dollar continues to get stronger and stronger with better economic news, which indicates they might raise rates in September and that could mean a lower dollar … going forward,” she said.
Some observers are speculating that the Bank of Canada will once again lower interest rates. An announcement on the future rates will be made on September 9th. If the US central bank increases interest rates, this could add up to an even more devalued loonie.