The Loonie opened at 79 cents today amongst fear that it may plummet further due to either the low price of oil and anticipation of an interest rate hike.
But the low Canadian dollar isn’t necessarily bad news in several sectors, including forestry, tourism and manufacturing.
Rick Takagi, Manager at the Ainsworth Site in 100 Mile House, says the lower dollar helps with exports to the U-S
The negative consequence however would be in capital costs as a lot of equipment is American-made, and would essentially be 20% more expensive.
Basically, Canadian-exported goods become cheaper for foreign buyers from the lower dollar, while Canadian manufacturers dependent on imported raw materials or equipment will suffer from a lower dollar.
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