12/02/2013 12:20 EST | Updated 02/01/2014 05:59 EST

Loonie falls to 2-year low under 94 cents

The Canadian dollar lost more ground on Monday, falling to its lowest intraday level in more than two years.

Nearing midday, the loonie was changing hands at 94.06 cents US. Earlier in the day, it traded as low as 93.86 before recovering some ground.

That's the lowest the loonie has traded since October 2011. If the Canadian dollar ends the day below 94 cents, it will be the first time that's happened in more than three years, dating back to September 2010.

After repeatedly trading above parity in recent years, consensus has turned for the loonie, with some watchers saying Canada's dollar could fall a lot more. Goldman Sachs predicted last week the loonie will trade in the high 80-cent level next year.

"The momentum for the Canadian dollar is moving one way for the last three months: lower," Forex Live currency analyst Adam Button told CBC News in an interview.

But Button said the slow march of the loonie is really more about strength in the U.S. dollar than any sort of Canadian weakness. The economic picture continues to improve south of the border, and that's spurring confidence in the American dollar, the world's reserve currency.

"Canadian oil is trading at a $30 discount to U.S. oil," Button notes. "That's what's sinking the loonie more than anything."