Loonie hits four-month low as Bank of Canada holds key interest rate - Terrace Standard

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Loonie hits four-month low as Bank of Canada holds key interest rate - Terrace Standard
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Loonie hits four-month low as Bank of Canada holds key interest rate

The value of the loonie hit a four-month low compared with the U.S. dollar on Wednesday, but some experts say Canadian consumers shouldn’t expect their wallets to take a major hit.CIBC chief economist Avery Shenfeld said the weak loonie is reflective of the U.S. Federal Reserve getting more aggressive on interest rate hikes while the Bank of Canada holds its key rate steady for the first time in a year.

“Even if something is an imported good, the import price doesn’t tend to pass on all the exchange rate moves. It tends to show up in things like fresh fruits and vegetables, but if you’re talking about a T-shirt at the department store, it was probably made outside North America.” Darcy Briggs, senior vice-president and portfolio manager at Franklin Templeton Canada, said he expected the loonie would continue to trade soft until the U.S. Federal Reserve reaches the end of its tightening cycle.

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