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Sunday, February 23, 2020  Spokane, Washington  Est. May 19, 1883
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Outdoors blog

Exchange rate favors outdoor adventuring in Canada

The Canadian loonie has declined in value with the American dollar by more than 17 percent in 2015.
The Canadian loonie has declined in value with the American dollar by more than 17 percent in 2015.

OUTDOOR TRAVEL -- Low fuel prices and a favorable exchange rate make an outdoor adventure in Canada especially attractive this season.

Gas hasn't been this cheap since 2009 and U.S. currency packs a punch at only 71 cents to match a Canadian dollar.

"The Canadian dollar is on track to experience its second-biggest decline on record against the U.S. dollar, and analysts forecast the currency could go lower before it bounces back next year," reports the Calgary Herald.

The loonie is now down nearly 17 per cent against the greenback for 2015, the biggest drop since 2008, when it lost 18.6 per cent against the U.S. dollar due to a collapse in commodity prices....

“The Canadian dollar is expected to rise in second half of 2016, but the currency could be in for more pain in the near term as markets continue to speculate whether the Bank of Canada could cut rates one more time before an expected rate increase in the second half of next year,” said RBC economists in a note to clients.

The Canadian dollar added 0.03 of a U.S. cent to 71.71 US cents Friday, a day after slipping below 72 US cents for the first time since May 2004....

“(The loonie) is now testing the 1.400 level (against the U.S. dollar) and given that it has finally started to outperform competitor currencies in the last quarter, there is a possibility that Gov. Poloz decides to keep the powder dry at the beginning of the year,” said Jimmy Jean, senior economist at Desjardins Securities....

“We expect the Canadian dollar to remain around 71 US cents through the first quarter of 2016 before rising gradually thereafter,” said Dina Ignjatovic, economist at TD Economics.

Rich Landers
Rich Landers joined The Spokesman-Review in 1977. He is the Outdoors editor for the Sports Department writing and photographing stories about hiking, hunting, fishing, boating, conservation, nature and wildlife and related topics.

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