A rising loonie. Imagine that.
If you were planning on buying some U.S. dollars or something online priced in greenbacks before the loonie collapses further, you might want to hold off for a week or so, according to at least one prediction.
The Canadian dollar is likely headed back up, experts at Capital Economics said in research note Friday.
“The Canadian dollar’s sharp decline over the past few weeks seems a tad overdone and we wouldn’t be surprised if it enjoyed a modest rebound over the coming month or so,” the note said.
READ MORE: Loonie dives below 90 cents after currency ‘thrown under bus’
The loonie – which has slumped to below 90 cents US in recent days — has fallen so far so fast, that it’s bound to recover some ground.
To what extent? Capital Economics says it could hit 94 cents again before beating a retreat back down over the balance of the year.
The outlook may be correct – the loonie is trading 0.2 per cent higher at the moment (though still below 90 cents).
“Over the longer-term, however, we still stand by our long-held view that the Canadian dollar will slide to US$0.87,” Capital Economics said.
READ MORE: Vacation operators tacking on new $35 ‘currency surcharge’
Comments