It appears a “How low can it go?” situation is developing when it comes to the Canadian dollar.
With the loonie currently bouncing around 83 cents compared to the U.S. dollar, some Canadian media outlets are wondering how much further it will weaken. Here’s a link to a column in The Globe and Mail that notes a financial securities firm predicts it will be around 78 cents by the third quarter. While oil prices are a big factor, the column also notes that current Canadian monetary policy will also keep the loonie weak compared to the U.S. dollar.
Another Canadian article on the CBC News website notes that Canadians are now paying more for imported American products. This includes a variety of things priced in U.S. dollars, including cars and iPhones.
It should make for interesting times for Whatcom County retailers. Will Canadians continue to shop across the border in Whatcom County? Gas and dairy prices are still significantly less than in British Columbia, but the weaker purchasing power of the loonie is a bummer for consumers. It is expected to be good news, however, for Canadian exporters.