Weak start to 2015 for the loonie
The economy heads into the New Year in uncertain territory with energy sector revenues on shaky ground and continued speculation about interest rates. The Canadian dollar is starting the year weaker against the US dollar, hitting a 5 year low on Friday. The loonie dropped 8 per cent against the greenback in 2014 and economists are predicting there may be lower rates to come as oil prices fall further but that we will see a return to around 90 cents by the end of this year. For the real estate market the weaker loonie could intensify foreign investment and is also likely to see Canadians favouring domestic recreational properties rather than more expensive US options.