BUSINESS

Loonie's dive to take a toll on cross-border shopping, vacations: experts

06/24/2013 04:00 EDT | Updated 08/23/2013 05:12 EDT
TORONTO - The Canadian dollar is the weakest it's been in more than 18 months, and some experts say this will likely mean fewer bargains for those heading to the U.S. to shop or vacation.

On Friday, the loonie tumbled to its lowest level since November 2011, dropping 0.76 of a cent to 95.64 cents US.

Nick Bontis, an associate business professor at McMaster University, says a lower loonie means that Canadians heading south this summer for a good deal may not necessarily find one.

Bontis says the Canadian dollar is sensitive to the performance of its American counterpart, which doesn't look like it's going to fall any time soon.

The Canadian dollar has dropped as the greenback continues to strengthen, boosted by higher bond yields after the U.S. Federal Reserve said it's going to begin tapering off its $85-billion-a month bond buyback program.