Why the Loonie Rally Is Coming to an End
- Canadian dollar outperformed all major peers in the past month
- Rally helped by bets central bank may increase rates next week
Top Forecasters Warn That Loonie's Rally Is Close to Done
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The Canadian dollar’s world-beating rally is losing steam, according to the currency’s most accurate forecasters.
The loonie has gained 4 percent against the greenback over the past month, to C$1.2933, beating all 31 major global currencies tracked by Bloomberg after policy makers signaled they may raise interest rates for the first time since 2010. Still, the median estimate in a Bloomberg survey predicts a 3.5 percent weakening to C$1.34 by the end of 2017, which would be the steepest drop after New Zealand’s dollar and the Danish krone.