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Sizing up the Canadian dollar

BlackRock |Jun 19, 2017

Canadian investors seeking exposure to U.S. and international stock markets should keep an eye on the Canadian dollar which has slumped against many global currencies so far in 2017.

 Key takeaways

  • The Canadian dollar has been hit by a number of headwinds year-to-date, including falling energy prices and the prospect of further rate hikes south of the border.
  • The loonie has tended to weaken versus the U.S. dollar and other safe-haven currencies during times of financial and economic stress.
  • The comprehensive suite of iShares ETFs includes several unhedged and CAD-hedged options that provide investors with a simple, low cost way to express their currency view on their international investments.

The loonie flip-flop
Year-to-date change in the spot rate for selected currencies versus the Canadian dollar

Chart: Sizing up the Canadian dollar

Source: Bloomberg, BlackRock Investment Institutue, May 2017