Report: Canadian dollar to drop to 75 cents by early 2016

The Canadian dollar is expected to 75 cents compared to the U.S. dollar by early 2016, according to a new report from TD Economics.

Here’s a link to the report. The main factors include crude oil prices, which are expected to remain low, and an under-performing Canadian economy compared to the U.S.

The report also expects the Bank of Canada to make another rate cut in March, which would further weaken the loonie. If things turn around and the Bank of Canada begins raising interest rates again, the loonie should bounce back to 85 cents, according to the report. That’s expected to happen at the end of 2016.

This story was originally published January 26, 2015 at 4:09 PM with the headline "Report: Canadian dollar to drop to 75 cents by early 2016."