The loonie saw its biggest monthly decline against the U.S. dollar since October last month. The currencies (CADUSD=X) could drift further apart, say analysts, if Canada’s central bank widens its policy rate gap with the Federal Reserve.
Earlier this week, RBC Capital Markets issued a list of Canadian stocks that could benefit under a strong greenback and weak loonie, as well as some that could take a hit.
Canada’s economy grew 0.2 per cent in April, below the pace forecast by Statistics Canada and other economists. Wednesday’s sluggish GDP reading ups the pressure on the Bank of Canada to ease borrowing costs. Meanwhile, Fed officials signalled on Wednesday intentions to hold rates steady to further tame inflation.
“The underperformance of the Canadian…
