The value of the loonie hit a four-month low compared with the U.S. dollar on Wednesday, but some experts say Canadian consumers shouldn’t expect their wallets to take a major hit.
The Canadian dollar traded at 72.54 U.S. cents on Wednesday, the weakest level in more than five months.
CIBC chief economist Avery Shenfeld said the weak loonie is reflective of the U.S. Federal Reserve getting more aggressive on interest rate hikes while the Bank of Canada holds its key rate steady for the first time in a year.
While import cost hikes could lead to higher prices for items such as groceries, he said the effect on Canada’s inflation rate should be minimal.
“This is pretty small potatoes in terms of the inflation rate. We’re talking a decimal place here or there,” Shenfeld said.
“Even if something is an imported good, the import price doesn’t tend to pass on all the exchange rate moves. It tends to show up in things like fresh fruits and vegetables, but if you’re talking about a T-shirt at the department store, it was probably made outside North America.”
The Bank of Canada held its key interest rate at 4.5 per cent Wednesday based on its assessment of recent economic data. Shenfeld noted the central bank signalled it won’t respond to a modest further weakening of the currency.
“Given the choice, I think Canadians would be happier not to see another rate hike than to protect the Canadian dollar from another cent or two slide,” he said.
Darcy Briggs, senior vice-president and portfolio manager at Franklin Templeton Canada, said he expected the loonie would continue to trade soft until the U.S. Federal Reserve reaches the end of its tightening cycle.
“That’s the thing with currencies. They make some pretty dramatic moves pretty quickly,” he said. “They’ll kind of lay in limbo and then volatility spikes.”
Briggs said that could make life more expensive in the meantime.
“If the Canadian dollar is depreciating, and it’s depreciating against the number of currency baskets, then any products that we import, by definition, will be more expensive because we’re paying it with a cheaper Canadian dollar,” he said.
“That will take a bite out of consumption and it’ll actually factor into inflation.”
University of Toronto economist Angelo Melino predicted the divergence between the Canadian and U.S. interest rates to last at least 10 months.
But while the weakened loonie could make products denominated in U.S. dollars, more expensive, Melino said the effect on the Canadian inflation rate won’t be major.
“They’re going to matter for specific goods and services,” he said.
“If you’re planning to go to Florida for vacation, or Disneyland, you’re going to see it right away.”
Should the Canadian dollar remain low for an extended period, Melino said that could create a shift in demand away from U.S goods and services toward Canadian ones.
“Both Canadians and Americans will be buying goods and services produced in Canada and that tends to be good for Canadian output, but also inflationary,” he said.
This report by The Canadian Press was first published March 8, 2023.
VANCOUVER – Environment Canada is warning about an intensifying storm that is expected to bring powerful winds to Vancouver Island and the British Columbia coast this week.
Matt MacDonald, the lead forecaster for the BC Wildfire Service, says models predict “explosive cyclogenesis,” which is also known as a bomb cyclone, materializing Tuesday night.
Such storms are caused by a rapid drop in atmospheric pressure at the centre of a storm system that results in heavy rain and high winds.
MacDonald says in a social media post that B.C. coastal inlets could see “hurricane force” winds of more than 118 km/h and create waves up to nine metres off Washington and Oregon.
Environment Canada posted a special weather statement saying the storm will develop off the coast of Vancouver Island on Tuesday, bringing high winds and heavy rain to some areas starting in the afternoon.
It says the weather system may cause downed trees, travel delays and power outages, adding that peak winds are expected for most areas Tuesday night, though the severe weather is likely to continue into Wednesday.
B.C. has been hit by a series of powerful fall storms, including an atmospheric river that caused flash flooding in Metro Vancouver in mid-October.
A lightning storm overnight and early Monday covered parts of Metro Vancouver in hail.
This report by The Canadian Press was first published Nov. 18, 2024.
This will allow CBP to enhance border security while facilitating legitimate cross-border trade and travel. CBP officers will be deployed to busier ports of entry, enabling the agency to use its resources most effectively for its critical national security and border security missions.
These adjustments formalize current operating hours that have been in effect for more than four years at 13 ports of entry across the northern border, with eight ports of entry expanding hours. A small number of ports will see reduced hours in an effort to continually align resources to operational realities. Travelers who use these affected crossing locations will have other options within a reasonable driving distance.
Importantly, these adjustments have been made in close coordination with CBSA, to ensure aligned operational hours that further enhance the security of both countries.
CBP continually monitors operations, traffic patterns and volume, and analyzes the best use of resources to better serve the traveling public. CBP will remain engaged with local and regional stakeholders, as well as communities to ensure consistent communication and to address concerns.
The vast majority of the 118 northern border ports of entry will continue to operate at existing hours, including many with 24/7 operations. Locate ports of entry and access border wait times here.
The following are the new permanent POE hours of operation for select New York POEs:
Chateauguay, NY new hours of operation – 6 am to 6 pm
Trout River, NY new hours of operation – 6 am to 6 pm
Rouses Point, NY new hours of operation – 8 am to 8 pm
Overton Corners, NY new hours of operation – 6 am to 10 pm
Again, these changes will go into effect beginning at midnight, January 6, 2025.
Below is a listing of each location with the closest border crossing that will remain open 24/7 for appropriate commercial and passenger traffic:
Chateauguay, NY – closest 24/7 port: Fort Covington – 27 miles
Trout River, NY – closest 24/7 port: Fort Covington – 11 miles
Rouses Point, NY – closest 24/7 port: Champlain – 8 miles
Overton Corners, NY – closest 24/7 port: Champlain – 5 miles
For additional information or to contact a port of entry, please visit CBP.gov.
Follow us on X (formerly Twitter) @CBPBuffalo and @DFOBuffalo
For more on Customs and Border Protection’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Follow us on X (formerly Twitter) @CBPBuffalo @DFOBuffalo and @USBPChiefBUN
OTTAWA – An Ottawa man is pleading not guilty to charges of terrorism and hate-speech related to the promotion of a far-right group.
RCMP charged Patrick Gordon Macdonald in July 2023, alleging he took part in activities of a listed terrorist organization.
It’s the first case in Canada where the government laid charges for both terrorism and hate propaganda against someone for promoting a violent, far-right ideology.
As the trial opened Monday in Ontario’s Superior Court of Justice, Crown prosecutors alleged Macdonald helped produce propaganda for the Atomwaffen Division, an international neo-Nazi organization Canada listed as a terror group in 2021.
Prosecutors alleged he aided in the production of three propaganda videos designed to recruit new members and incite hatred against Jews.
The allegations have not yet been proven in court.
This report by The Canadian Press was first published Nov. 18, 2024.
