The Canadian dollar’s dip will be quick
Posted May 26, 2011 8:21 pm.
This article is more than 5 years old.
One economist says the loonie’s recent tumble does not spell trouble.
The Canadian dollar has fallen five cents against the American greenback in the past three weeks, but still sits above par.
Todd Hirsch Senior economist with ATB Financial tells 660News the flight from the loonie is driven by a drop in oil prices and the sovereign debt crises in Europe.
Hirsch expects the Canadian dollar to bounce back and stay above par for the rest of the year.
He adds a low loonie can help Canadian exports.
Hirsch adds the loonie has a lot of things going for it, including a stable government with a projected balanced budget within four to five years, which investors find attractive.
Also, the recent weakness in the Canadian dollar is not reflective of a weak economy and if oil prices begin to climb expect the loonie to point higher.
