Canadian dollar fell to the lowest level in five months, since October 23, 2013, the Canadian dollar lost 6.8% against US dollar with two-third of the drop occurring in January alone, the combination of the growing though limited, expectations that the bank may cut rate in 2014 stagnant commodity price, and a recovery in positive sentiment towards US dollar had a hand in the Canadian dollars drop. It fell to the lowest as crude oil, the nation’s largest export, traded at almost the lowest point in more than a year.
However, a weakening Canadian dollar for most of country’s companies, boosting profit earning in US dollars relatives to cost in the local currency, companies in the energy, forestry and mining sectors that have most of their production in Canada while selling their products in US dollars will benefits the most. So a weaker dollar is a welcome news for large swaths of the economy that have struggle to recover from the recession, most notably manufactures, for those company’s sales are in US dollars, a lower Canadian dollar means higher profits and more money to invest and increase workers. Also for the international students, they have the benefit too, because as the Canadian dollar lower, the exchange rate between their countries’ currency and Canadian dollar is lower, so the tuition fee they paid and the living fee they spent will become less, so that’s a good news for me, as i am an international student~
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