Experts Warn: Canadian Dollar Plummets Further, How Low Will It Go?

As the bleak outlook for the Canadian dollar looms ahead, experts are predicting a challenging road ahead for the currency. Karl Schamotta, chief market strategist at Corpay, voices concerns about the Canadian dollar’s continuous decline, emphasizing the potential for further fall in the coming months. With the Canadian dollar trading below 70 cents US and a significant decrease from its value in September, Schamotta paints a grim picture of the currency’s immediate future.

Turbulence and Uncertainty:
- The uncertainty surrounding the policy proposals of incoming U.S. president Donald Trump is expected to have a negative impact on business investment and consumer confidence in Canada. This factor, along with the disparity in monetary policy between Canada and the United States, contributes to the weakening of the Canadian dollar in the global market.
Economic Factors at Play:
- The superior performance of the U.S. economy, paired with higher U.S. yields, is attracting international investments to the United States, further marginalizing the appeal of the Canadian dollar.
Rate Cuts and Economic Slowdown:
- The recent interest rate cuts from the U.S. Federal Reserve highlight the economic struggles faced by Canada. With negative population growth forecasted for 2025, the shrinking Canadian economy faces further challenges in the coming years.
Future Projections:
- Despite the expectation of a gradual recovery in the Canadian dollar throughout 2025, the looming tariffs from President Trump’s administration pose a threat to the stability of the currency.

In conclusion, the path ahead for the Canadian dollar seems fraught with challenges, reflecting a broader trend of economic uncertainty. While external factors play a significant role in the currency’s decline, internal economic issues must also be addressed to ensure a more stable and prosperous future for Canada.allenges, reflecting a broader trend of economic uncertainty. While external factors play a significant role in the currency’s decline, internal economic issues must also be addressed to ensure a more stable and prosperous future for Canada.