BUSINESS

Canadian Dollar Hits 2-Year Low

11/29/2013 03:20 EST | Updated 11/29/2013 03:24 EST
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Talk about bad timing.

As Canadians travelled across the border on Friday to take advantage of Black Friday sales, the loonie touched a two-year low against the U.S. dollar.

The Canadian dollar traded as low as 94.16 cents U.S. on Friday, levels last seen in October of 2011.

It bounced back slightly Friday afternoon, trading around 94.22 cents as of 3 p.m. EST.

The loonie had been sliding all week, amid news that investment bank Goldman Sachs expects Canada’s dollar to fall to 88 cents U.S. next year.

News that Canada’s economy grew at a faster-than-expected pace didn’t stop the loonie’s decline. StatsCan said Friday that Canada’s economy grew at a 2.7-per-cent pace in the third quarter of this year, the fastest in two years.

TD Securities currency strategist Greg Moore told the Wall Street Journal that the fact it’s the Thanksgiving weekend in the U.S. made the loonie’ decline worse.

Trading is light on the Friday after Thanksgiving, Moore said, exaggerating the effects of currency moves.

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