The Canadian dollar took a hit on Friday, Oct. 3 on a better-than-expected U.S. jobs report.
In the earlier hours of trading the loonie was bouncing around 88 cents compared to the U.S. dollar. That’s the lowest level for the Canadian dollar since March. Michael Babad of The Globe and Mail has an excellent post summing up the reasons for the weaker loonie. Here’s the link.
Some experts are predicting that the loonie will continue to weaken, hitting the 83-cent level (compared to the U.S. dollar) in 2015. If that happens, it will be interesting to see what happens to cross-border traffic.
When the loonie was dropping in the first quarter of 2014, retail sales did slow down in Whatcom County’s big box stores, dropping about 12 percent compared to a year earlier, according to data from the Washington State Department of Revenue. Other factors could have played a role, however, including the overall sluggish economy during that period and some nasty winter weather in February. The economy, and Canadian traffic into Whatcom County, appeared to bounce back in the second quarter.