Canadian dollar slips to new lows
The Canadian dollar slipped to fresh new lows in Friday trading as commodity prices, a weak economy, and dismal forecasts had investors continuing to bail out of the beleaguered currency.
At the close of official Bank of Canada trading, the loonie was at 62.37 cents US, down 0.17 cents from Thursday's record low close of 62.54 cents US.
The dollar's slide has been pronounced this month as it first slid below a record-low level that had held for three years. But it has been falling all year against the American greenback down about 6 per cent since the start of the year.
BMO Nesbitt Burns chief economist Sherry Cooper said the loonie's slide is inexorable and she urged Canada to adopt a common currency with the United States.
"What makes us think we can buck this tide? Let's dollarize and get it over with while we still have something to bargain with," she wrote in an e-mail sent to clients Thursday.
"The loonie is a symbol of our independence. But Germany, France and 10 other European countries have managed to form a monetary union without losing their national identities or cultural distinctions. Better now at 62 cents than later at 50 cents," she wrote.
She said if things carry on like they have, she could see the loonie at 50 cents US within 7 years.
"I don't believe it's through any fault of our own," she told CBC Newsworld Friday. "I think it's a result of the blurring of national economic borders."