Tradelines News

Get the latest news and updates on cross-border customs and international trade.

Canadian Dollar Could Fall Back to Record Low, Fidelity’s Wolf Says

Posted March 19, 2019

Under Economic Issues, International Trade Issues


(Esteban Duarte – Bloomberg)

The Canadian dollar may sink back to its record low of 62 U.S. cents 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 per cent drop from current levels of around 75 U.S. cents may sound like a lot but the currency has already fallen about 30 per cent 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 US$100 a barrel.

Now, the nation may already be in recession after growing at an annualized pace of just 0.4 per cent in the fourth quarter and a pretty “soggy” start to the year, said Wolf, part of the asset allocation team at Fidelity Investments Canada, which manages about $136 billion. He stressed his views were his own, not the firm’s.

“There’s a good chance that those stars are going to be misaligned,” Wolf said in an interview at Bloomberg’s Toronto office. Click here to read more.

Related: