Canadina Dollar Decade-Long Rally Ending, Davis Rea Says
This article is for subscribers only.
The more than a decade-long rally in the Canadian dollar that was fueled by the boom in commodities is in danger of ending as demand for natural resources falters, according to investment management company Davis Rea Ltd.
The currency may tumble more than 30 percent to as low as 70 U.S. cents over the next decade as commodities enter an extended bear market, John Johnston, chief strategist at Toronto-based Davis Rea, wrote in a report. The currency, known as the loonie for the image of the water fowl on the C$1 coin, dropped today to an eight-month low of C$1.0309 per U.S. dollar, or 97 U.S. cents.