Canadian dollar set to hit 80 cents US for the first time since 2015

July 23rd, 2017  |  Canadian Business

Since 2015, the Canadian dollar has failed to reach the mark of 80 cents US, however, after two years, the dollar is set to do that just. For the first time since the summer of 2015, the Canadian dollar is projected to hit 80 cents US.

As of Friday, the markets closed with the Canadian dollar sitting at 79.76 cents US, just bellow the 80 cent threshold. Since the beginning of May, the Canadian dollar has gained just shy of 10% of it’s value, thanks in part to booming retail sales, a strong job market, thriving factory production, and a recent rise in interest rates.

According to Bank of Montreal economist, Doug Porter, activities south of our boarder could also be playing a factor in the value of the Canadian dollar. While the dollar’s rising value is the positive result of many homegrown factors, the Canadian dollar must also thank the dwindling value of the US dollar. After seeing a 14-year high shortly after President Trump’s election, the US dollar has lost some of its vigor this summer, owing largely to the fact that the administration has not gotten very much done. The US dollar rose on the heels of statements promising to lower taxes, boost infrastructure and cut red tape. 

"About one-third of the Canadian dollar's move is due to specific, Canada-centric factors," said Porter, "and the rest reflects broader weakening in the U.S. dollar since that point."