The Canadian dollar is now trading at just above US $0.71, its lowest level in almost five years, and most experts predict the dollar will continue to remain weak for the foreseeable future.
The price for almost all goods imported from the United States, from manufacturing supplies to fruits and vegetables will go up.
Victor Adair, a trader who runs a blog, said in the last week the Canadian dollar has fallen about five cents since late September.
“The reason the Canadian dollar goes up almost always doesn’t have anything to do with what is going on in Canada, it has to do with what’s going on in the world,” he said.
Adair said the U.S. dollar has climbed higher since Donald Trump was elected president but it was trending that way before the election.
“When the currency gets on a roll, as it was, and then to have something else come along to give it another kick to the upside, like the election of Trump, the U.S. dollar then accelerated on the upside,” Adair added.
“It’s gone up about six per cent in the last six weeks and historically that’s a pretty extreme move in the U.S. dollar.”
Adair said the end of September was a turn date when the U.S. dollar started to rally against everything the Canadian dollar fell against the U.S. one.
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He added that he does expect the Canadian dollar to bounce back.
Adair said this is good news for the export business but not so much for the import business.
“For people who are having to import things from the United States, it’s going to cost more,” he said. “For example, we don’t grow oranges here, so if you want oranges, they’re going to be more expensive just on the basis of the foreign exchange rate.”
Carman Louie, with Donald’s Market on East Hastings Street, said produce has become more expensive, along with products such as olive oil but there is a way to keep costs low.
“A lot of times, if we can get local, we go for local,” she said, “and that’s a better price than the U.S.”
But for the tourism sector, a weak Canadian dollar makes the province an even more attractive destination for visitors, something B.C. ski resorts are hoping to cash in on this winter.
“If you look at cat skiing, heli-skiing and the 13 destination resorts from Fernie right through to Mount Washington on the coast, everyone’s going to do well,” Michael Ballingall with Big White Ski Resort told Global News.
“And that bodes really well for the economy of British Columbia.”
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