By Ryan Rocca
Published November 14, 2024 at 4:41 pm
The Canadian dollar is trading at multi-year lows against the United States dollar following Donald Trump’s election victory.
The loonie was trending lower since around the beginning of October, but has dropped even further since the Nov. 5 election.
The Canadian dollar traded for 71.29 cents US Thursday compared with 71.53 cents US on Wednesday.
In contrast, in May 2021, the Canadian dollar traded for around 83 cents US.
It’s 52-week high stands at nearly 76 cents US.
And it doesn’t appear that the loonie will be recovering anytime soon.
“The trajectory is weaker given that Trump will be in the White House, which is a negative for Canadian exporters/business investment due to trade policy uncertainty,” said Katherine Judge, the director and senior economist at CIBC capital markets.
“And we are now likely to see a wider gap between the fed funds rate and the BoC’s overnight rate.”
CIBC has …