Canadian dollar to rally over 2023 as interest rates hit their peak
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TORONTO — The Canadian dollar will rally over the coming year as major commodity consumer China loosens its COVID-19 restrictions and the United States Federal Reserve potentially concludes its campaign to increase interest rates, a Reuters poll showed.
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The loonie has weakened over seven per cent against the U.S. dollar since the start of 2022, with almost all of the decline coming since mid-August.
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According to the median forecast of 35 currency analysts surveyed Dec. 1-6 the currency will rebound 1.1 per cent to $1.35 per U.S. dollar, or 74.07 cents U.S., in three months, compared with November’s forecast of $1.36.
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It was then expected to strengthen to $1.30 in a year.
“Our forecast for a weaker (U.S.) dollar in 2023 against major currencies, as the Fed switches gears and telegraphs an end to its tightening cycle, and a better growth outlook in Canada…
