Canada’s currency weakened past 77 US cents for the first time since 2009 amid speculation the nation’s central bank will cut interest rates again to fight the economic damage from lower oil prices.
[np_storybar title=”Uh oh, looks like it’s going to be an ugly year for the Canadian dollar” link=”http://business.financialpost.com/investing/trading-desk/bank-of-canada-cuts-rate-guts-loonie-confirming-its-going-to-be-an-ugly-year-for-the-canadian-dollar”]
The perfect storm of the Bank of Canada rate cut, weak oil prices, a sluggish economy and a looming Federal election are ganging up to push the loonie as low as 70 cents, economists say. Read on
The loonie fell to as weak as 76.8 US cents. It traded at 76.98 at 8:41 a.m. in Toronto, and is poised to decline for a fourth.
“The loonie is flying through the perfect storm and is bound to lose some feathers,” National Bank Financial economists Stefane Marion and Matthieu Arseneau wrote in a research note. “The oil shock was more brutal…
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