The Canadian Dollar Sees Biggest Daily Drop in Eight Months
Side by side with a 7 per cent fall in the S&P/TSX index and a roughly 3.7 per cent decrease in oil prices, the Loonie has slid a full 1.5 cents to the U.S. dollar – the largest slump it’s seen in more than half a year – as reported today on the Globe Investor Market Blog. This means that, overall, the Canadian dollar has lost almost 4 per cent of the gain it saw at its peak at April’s end.
Despite this, and the fact that the U.S. coin has recently seen some recovery, the Loonie still stands ahead at a value of $1.02 US at the time of this publication. U.S. spending has reportedly gone up, yet investors are mixed on whether their dollars are safer invested in “the greenback”, in Canadian funds, or in gold.
Other investors say the spike in the U.S. dollar value is not reflective of the current tumultuous state the economy there is still in, and press again that the safest bet is still diversification.