canadian dollar slide
Canadian Press – September 22, 2022 / 10:57 AM | | Story: 386520
Photo: Canadian Press
Canadian dollar coins are pictured falling Wednesday, May 29, 2019 in North Vancouver, British Columbia. A day after the US Federal Reserve raised key interest rates, the Canadian dollar is falling again. THE CANADIAN PRESS/Jonathan Hayward
The Canadian dollar fell again, hitting its lowest level in over two years a day after the US Federal Reserve raised key interest rates.
Looney fell below 75 cents earlier this week and fell further after the Fed raised key rates by three-quarters of a percentage point on Wednesday.
Knightsbridge Foreign Exchange President Rahim Madhavji says the Canadian dollar faces three closely related pressures: rising US interest rates, falling stock markets and a flight to the safe haven US dollar. increase.
He said Looney is closely tied to economic growth prospects and stock market performance, so when the market fell, so did the currency.
Madhavji said continued US inflation likely means higher interest rates and more pressure on markets ahead.
However, the Canadian dollar has outperformed most other currencies, with the National Bank saying earlier this month that it is the best performing major currency against the U.S. dollar this year.