For the first time since 2015, the loonie reached 80 cents to the US dollar on Monday morning, July 24th. With booming retail sales, a robust job market, and factory production picking up steady momentum, the Canadian economy is making a comeback.
The loonie’s progression can be directly related to the central bank tightening their monetary policy and hiking their interest rates.
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Another decisive factor in the loonie’s speedy propulsion is the weakening of the US dollar. When he was first elected, Trump’s presidency saw a poignant rise in the dollar’s value. It saw its highest value in over 14 years, but has since crashed monumentally owing to the current administration’s lack of efficiency.
The loonie rose over 10% in since May, when it had dropped down a bit lower.
The rise is also directly related to an oil rebound, trade policies, and sales of motor vehicle and agricultural supplies.