The Canadian dollar is undervalued relative to the U.S. currency and is trading at a bargain, said David Rosenberg, chief economist at Gluskin Sheff + Associates.
“The Canadian dollar right now is probably about 5 percent below any semblance of fair value,” Rosenberg said Wednesday at Bloomberg LIVE’s Canadian fixed income conference in New York.
The Canadian dollar reached an 11-year low this month, dipping to C$1.35 per U.S. dollar on Tuesday. That’s the lowest since June 2004. One loonie, as the currency is known, buys 75 U.S. cents.
The lower dollar is providing assistance to exporters, said Warren Lovely, managing director at National Bank of Canada.
“The Canadian dollar needs to stay low for longer,” Lovely said, adding that the currency may reach C$1.35 to C$1.37.