# Why weak Canadian dollar fears are overblown

> The Canadian dollar fell to a three-week low after weaker-than-expected retail sales suggested higher interest rates are squeezing consumers. RBC economists argue that fears of a weak loonie fuelling inflation are overstated because services now dominate the economy.

- Date: 2023-04-25 · published 2023-04-25T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/36636-why-weak-canadian-dollar-fears-are-overblown
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Currency weakness that prompts a central bank to hike again would tighten Canadian credit and slow demand. For feed buyers the effect on prices is indirect and currently limited.

## Read by commodity

- USDCAD: neutral

## Sources

- financialpost.com: https://financialpost.com/news/weak-canadian-dollar-fears-overblown/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.