# Five reasons the loonie has been falling: BMO - The Globe and Mail

> BMO's chief economist listed five reasons the Canadian dollar had dropped to about 77.5 U.S. cents in the week of August 23, 2021. The drivers were the Delta variant's drag on global growth, a roughly $10 fall in WTI since early August, hawkish-leaning Fed taper talk, Canada's federal election, and thin summer markets.

- Date: 2021-08-23 · published 2021-08-23T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/45793-five-reasons-the-loonie-has-been-falling-bmo-the-globe-and-mail
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Lower crude and risk-off demand for the U.S. dollar weaken commodity-linked currencies. A softer loonie can make Canadian canola and wheat cheaper for overseas buyers.

## Read by commodity

- WTI: bearish ▼
- USDCAD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-05-18 | [Canadian dollar falls as BoC’s Macklem resists validating rate hike bets - The Globe and Mail](https://feedsoft.ai/events/36189-canadian-dollar-falls-as-boc-s-macklem-resists-validating-rate-hike-bets-the.md) | +2.1% | -3.0% |
| WTI | 2017-03-27 | [This chart helps explain the abrupt shift to bearishness on the loonie - The Globe and Mail](https://feedsoft.ai/events/72215-this-chart-helps-explain-the-abrupt-shift-to-bearishness-on-the-loonie-the.md) | +6.4% | +3.1% |
| WTI | 2020-03-17 | [Canadian dollar sinking: The petro-loonie resurfaces at exactly the wrong time - The Globe and Mail](https://feedsoft.ai/events/54359-canadian-dollar-sinking-the-petro-loonie-resurfaces-at-exactly-the-wrong-time.md) | -19.2% | -30.3% |
| WTI | 2020-01-29 | [Canadian dollar nears seven-week low as oil prices fall - The Globe and Mail](https://feedsoft.ai/events/55300-canadian-dollar-nears-seven-week-low-as-oil-prices-fall-the-globe-and-mail.md) | -7.1% | -8.8% |
| WTI | 2024-07-26 | [Canadian dollar posts longest losing streak in six years as oil falls - The Globe and Mail](https://feedsoft.ai/events/29504-canadian-dollar-posts-longest-losing-streak-in-six-years-as-oil-falls-the-globe.md) | -2.3% | -7.0% |

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/investing/markets/inside-the-market/article-five-reasons-the-loonie-has-been-falling-bmo/

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