Loonie Plunges Through 80 Cents U.S. In Currency’s Biggest 2-Year Drop Ever
The Canadian dollar fell through a psychologically important barrier Wednesday, trading for the first time in five years below 80 cents U.S.
The loonie was hovering at 79.8 cents U.S. as of Wednesday afternoon, having followed oil prices downward for yet another day.
Bank of Montreal chief economist Doug Porter noted that the currency has shed 19.5 per cent of its value since January of 2013 — the biggest two-year drop in the currency’s history.
“There will be consequences,” Porter wrote, presumably referring to rising prices for consumers.
West Texas Intermediate was trading at around $44.50 per barrel, the lowest price for the benchmark oil in six years, according to the Wall Street Journal. Prices are down some 60 per cent since a recent peak last summer.
The latest oil price dive came amid news that U.S. oil stockpiles are at an all-time high, and have been growing at the fastest pace in 30 years. That’s a sign of a supply glut in the U.S.
…click on the above link to read the rest of the article…
