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Drop in loonie value not expected to affect Canadian shoppers

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Drop in loonie value not expected to affect Canadian shoppers

KGMI News Reporting
By Karen Taylor

WHATCOM COUNTY, Wash. – A Canadian economist says the slight drop in the loonie this week will not have a huge impact on Canadian spending in Whatcom County.

Chris Lawless with the British Columbia Investment Management Corporation says the loonie only dropped 0.3 percent, to 0.95 cents on the U.S. dollar.

Play Chris Lawless on lonnie value

Last Thursday, the Dow Jones Industrial Average dropped 350 points after Federal Reserve Chairman Ben Bernake announced that the U.S. might reduce monthly bond purchases.

Lawless says this means foreign investors will start to shift their focus away from the Canadian market back towards the U.S. market.

He says the loonie would have to drop another 10 to 15 percent for it to have any real impact on the savings for Canadian shoppers.