Given the weakening economic growth forecast, economists are predicting a falling Canadian dollar. Some are expecting it to fall to a record low.
Analysts at TD Securities recently predicted the loonie would trade in the 71-cent to 74-cent U.S. range this year. It was trading at 75.3 cents U.S. as of Tuesday morning.
A poor fourth quarter GDP report is what has caused concern.
The Bank of Canada hiked its key lending rate five times between 2017 and last year, on expectations that a strong economy would soon lead to inflation. But the recent slowdown in the economy has many experts convinced the central bank may have overdone it. Some analysts predict it will soon start lowering rates again in order to give a needed boost to the economy. But the downside is that it only serves to artificially prop up the economy but allowing for possible inflation. -CINEWS