“We haven’t seen these levels in a long time. I think we have certainly breached a level that is worrisome,” Judge said, pointing to a combination of factors and uncertainties impacting the currency in the months ahead.
The US dollar’s surge, driven by Donald Trump’s re-election as US president, has further weighed on the loonie.
Trump’s promises to introduce sweeping tariffs on all US imports have strengthened the US dollar against several foreign currencies, including Canada’s.
Judge suggested that the loonie could fall even further if tariffs appear likely. “There’s a lot of factors at play and a lot of uncertainty over the next few months,” Judge added, highlighting the looming impact of Trump’s proposed tariffs.
About 75 percent of Canada’s total exports head to the US, making the Canadian economy particularly vulnerable to these proposed measures.
