Fidelity’s Wolf Sees Loonie Testing 62-Cent Low Amid Slowing Economy
- Household deleveraging comes just as the global economy slows
- ‘Good chance that those stars are going to be misaligned’
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The Canadian dollar may sink back to its record low of 62 U.S. cents (C$1.61) as the country retrenches from a consumer-spending boom into the face of a slowing global economy, said David Wolf at Fidelity Investments.
A 17 percent drop from current levels of around 75 U.S. cents may sound like a lot but the currency has already fallen about 30 percent from above par in 2011 when Canada’s economic stars were aligned, said the Toronto-based portfolio manager. Back then, the country was revving up from the financial crisis and oil was over $100 a barrel.