# The loonie has fallen to its lowest level in almost two years — here's why | CBC News

> The Canadian dollar fell to about 75.15 US cents on Friday, its lowest level since October 2020, as investors fled to the U.S. dollar. Stubbornly high U.S. inflation raised expectations that the Federal Reserve would hike rates aggressively, with a 75 basis point move expected the following week. An analyst said the loonie could fall to 73 cents.

- Date: 2022-09-16 · published 2022-09-16T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/39816-the-loonie-has-fallen-to-its-lowest-level-in-almost-two-years-here-s-why-cbc
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A firmer U.S. dollar and higher U.S. rates tend to pressure dollar-denominated grain and oilseed prices while making US exports cheaper for foreign buyers. Tighter financial conditions also weigh on commodity demand.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2025-01-13 | [The US dollar is at its highest level in two years.](https://feedsoft.ai/events/26839-the-us-dollar-is-at-its-highest-level-in-two-years.md) | -0.3% | -0.9% |
| DXY | 2023-10-04 | [Rand falls to lowest level against the dollar in months](https://feedsoft.ai/events/33924-rand-falls-to-lowest-level-against-the-dollar-in-months.md) | -0.8% | +0.0% |
| DXY | 2018-05-16 | [US and German bond yields have widened to levels not seen in almost 30 years](https://feedsoft.ai/events/65212-us-and-german-bond-yields-have-widened-to-levels-not-seen-in-almost-30-years.md) | -0.0% | +0.9% |
| DXY | 2023-05-31 | [German inflation drops to lowest level in more than a year](https://feedsoft.ai/events/36151-german-inflation-drops-to-lowest-level-in-more-than-a-year.md) | -0.5% | -1.0% |
| DXY | 2023-01-01 | [Fed raises interest rates half a point to highest level in 15 years](https://feedsoft.ai/events/38155-fed-raises-interest-rates-half-a-point-to-highest-level-in-15-years.md) | -1.0% | -2.0% |

## Sources

- cbc.ca: https://www.cbc.ca/news/business/canadian-dollar-1.6585291

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