The Canadian dollar has not be this low since 2004.
On Wednesday the loonie dipped to 76.76 cents US, the lowest it has been since September 2004 when it hit the 75 cent mark. The loonie’s downward trend this year comes after an extremely strong last decade that saw the dollar reach on par with and above the U.S. dollar before and after the 2008 recession.
The cause of the falling dollar has much to do with the decline in oil prices over the last year. Corresponding with the loonie, the price of a barrel of oil dropped to $50 US Wednesday, continuing its fall from a high of over $100 a barrel in summer 2014.
Some analysts predict the loonie will fall even lower, especially after the Bank of Canada cut interest rates to 0.5 per cent.
“The Bank of Canada cut interest rates again and that should drive the loonie to 71 cents US, which should help the country’s export industry,” Craig MacAdam, portfolio manager at Aurion Capital Management told BNN.
The Canadian Dollar has fallen 17.4 per cent since this time last year.