For the first time in two years, the Canadian dollar has dropped below 75 cents U.S.
The loonie fell as low as 74.94 cents U.S. in active trading, its lowest level since November
2020.
The decline in the value of the Canadian dollar comes as nervous investors continue to buy the
U.S. dollar, which is the world’s reserve currency.
Despite its weakness against the U.S. dollar, the loonie continues to outperform other G10
currencies, down 5.01% versus the greenback this year. The Japanese Yen is down 20% this
year against the American currency.
The U.S. dollar could strengthen further as interest rates continue to rise.
The U.S. Federal Reserve’s next rate decision is scheduled for tomorrow (September 21), with
economists expecting the central bank to lift its trendsetting rate by three quarters of a
percentage point to a range of 3% to 3.25%.
