Lower loonie could be boon for Windsor bars
The Canadian dollar is at its lowest level in almost two years.
If it continues to fall, Canadian shoppers and vacationers heading across the border could be in for a more expensive summer.
In Windsor, it could be a blessing for the bar industry. A lower loonie could mean a higher number of Americans spending their suddenly-more-valuable cash at bars and on entertainment.
The loonie dropped below 95 cents U.S. Monday, the lowest its been since October, 2011.
"Does it help us? Yeah, it helps us. It brings people over," said Dan Hogan, who runs the Dugout Sports Lounge.
Hogan says his bar currently take U.S. money at par.
"I think the attendance in downtown Windsor has been a little short lately, but again that's a whole other subject for us to talk about," Hogan said.
Passport requirements in the U.S. have also put a dent in Windsor's tourism.
The falling Canadian dollar has largely been attributed to the U.S. greenback, which has found strength following an announcement last week from the U.S. Federal Reserve confirming that the end is near for its $85-billion-a-month bond purchases.
Nick Bontis, an associate professor at the DeGroote School of Business at McMaster University, said a weakened dollar does not bode well for cross-border shopping, especially as more Canadians decide to spend their money at home now that popular U.S. retailers like discounter Target have opened their doors here. Meanwhile, upscale chain Nordstrom is expected to arrive next year.
CBC Windsor's Adam Burns will have more on this story on Windsor at Six (channel 9, cable 10, Bell 587).
With files from Canadian Press