Value of Canadian dollar keeps falling against U.S. greenback

by Charlie Smith on September 26th, 2022 at 10:39 AM

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Vancouver residents face no end of financial headaches these days.

Retail gas prices are near record-highs. Inflation in B.C. remained at a stubbornly high 7.3 percent on a year-over-year basis in August.

Interest rates are rising, making it more difficult for those with variable-rate mortgages.

And this week, the loonie continues plunging in value in comparison to the U.S. dollar.

That has the potential to lift grocery prices even higher as lots food consumed in B.C., including many fresh fruits and vegetables, comes from south of the border.

The Canadian dollar is currently trading at US$0.73—the lowest it's been since June of 2020.

This has been the trajectory of the Canadian dollar over the past year.

On September 22, the U.S. Federal Reserve announced that the overnight interest rate was increasing to a range of 3 to 3.25 percent. That's prompted a flight to the U.S. dollar.

The chair, Jerome Powell, said that the latest rate hike demonstrates that central bank is "strongly resolved" to rein in inflation.