Bruised and battered: the loonie’s bumpy ride - Article from Global News
Posted by Steve Harmer on Monday, January 18th, 2016 at 10:44am.
Canada's dollar has been on a continuous slide, oil has dropped and the markets were all down. Prime Minister Justin Trudeau says he's "tremendously optimistic," but his finance minister sensed a different mood on a visit to Calgary.
The Canadian dollar is in the midst of its steepest decline in history. On Jan. 15, 2014, it was trading at a little over 91 cents U.S.
On Friday, it dipped below 69 cents US for the first time in 13 years.
That’s a drop of almost 25 per cent. In just two years.
That means your one-day ticket to Disney World near Orlando, Fla., – pegged at US$105 – will run you at least C$150. Two years ago, it would’ve set you back a little under C$115.
Throw in a few nights in a hotel, some meals and the cost of travel, and this year’s vacation just got a whole lot more expensive.
And it might only get worse for Canadians looking to get away. Earlier this week, David Doyle, an analyst at investment dealer Macquarie Capital Markets Canada Ltd., predicted the loonie will slip below 60 cents US by the end of the year.
Some predict the price of commodities – especially oil – will tumble further while China’s economy sputters, meaning it could be some time before the dollar recovers.
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