What’s Up with the Loonie?

What has caused the Canadian dollar to oscillate? Is the cause U.S., domestic, or something else?

Yan Barcelo 22 October, 2021 | 1:13AM
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 Canadian Coins

Last quarter, in less than two months, the Canadian dollar lost nearly 10 cents in value. In June 2021, the loonie held a relatively strong position at US$1.20, but in August, it had weakened to US$1.29.

“A funny creature, the loonie,” says National Bank economist Kyle Dahms. It is rare to see major currencies like the U.S. dollar, the euro or the yen lose nearly 10% of their value within a few weeks. Aidan Garrib, head of global macro strategy and research at Pavilion Global Market points out that it sometimes happens to second-tier currencies of countries heavy in commodities, like Australia, or of emerging markets, like Mexico.

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About Author

Yan Barcelo  is a veteran financial and economic journalist with more than 30 years of experience, writing for many publications in Toronto and in Montreal, including CPA MagazineLes Affaires and Commerce.

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