The Canadian dollar continues to drop steadily, hitting a fresh 11-year low on Thursday after dropping nearly half a cent against the U.S. dollar overnight.
The loonie is currently sitting at 74.6 cents U.S., and has fallen nearly 20 per cent in the last year.
Porter believes the loonie will hang around these levels for some time, though others, like economists at TD Bank, suggest the Canadian dollar is poised to fall at least another penny against the greenback.
Low for long
What’s more certain is that the dollar won’t be heading higher in value against the U.S. greenback, currency experts suggest.
“We continue to see few catalysts for the Canadian dollar, with risk in the medium term continuing to be centered around monetary policy, oil, and the impending Canadian election,” Rahim Madhavji, president at Toronto-based Knightsbridge Foreign Exchange, said.
MORE: Cheaper gas, costlier food, clothing — welcome to your new normal, Canada
During the CAD’s “lengthy bout of weakness” against the U.S. dollar in the 1990s, the 75-cent mark served as a particularly sticky valuation, Porter said. “It held around these levels for almost four years.”
WATCH: The dollar has been on a downward slide for months. It’s good news for foreign tourists but not so great for Canadians watching their buying power slide. Reid Feist reports.
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