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Canadian Loonie Sinks Below 71 Cents, 12 Year Low


The Canadian dollar’s downward spiral is slowing continuing, reaching a new  of 70.88 cents today, down from its high 71.56.

Poor prospects for domestic economic growth and the oil shock are among the top reasons for our currency’s decline, in addition to some of the decisions and routes taken by the Federal Reserve and the Bank of Canada.

“The CAD dropped more than 16 per cent against the U.S. dollar in 2015 and has fallen more than 30 per cent over the past three years,” says the Bank of Nova Scotia in its latest new forecast. “Low oil prices and sluggish domestic growth will count against the CAD in the coming year but we think longer-term investors may start to see the CAD as offering better value if spot reaches the 1.42/1.45 range in the next few months.”

According to the director of foreign exchange and macro strategy at CIBC World Markets, the current volatility in the market could really really put the loonie at risk.

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