# The loonie is sinking fast – and the Fed is to blame - The Globe and Mail

> The Canadian dollar fell to 79.3 U.S. cents, its lowest since April and down 3.8 cents from its June 2 high of 83.1 cents. Analysts attribute the decline mainly to expectations that the U.S. Federal Reserve will tighten sooner than expected due to a recovering economy and rising inflation expectations. The loonie remained the top-performing G10 currency against the dollar this year.

- Date: 2021-07-15 · published 2021-07-15T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/46277-the-loonie-is-sinking-fast-and-the-fed-is-to-blame-the-globe-and-mail
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of earlier Fed tightening strengthen the U.S. dollar, which typically pressures dollar-denominated commodity prices and makes U.S. exports less competitive.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-09-27 | [How the Fed is clipping the loonie’s wings - The Globe and Mail](https://feedsoft.ai/events/69196-how-the-fed-is-clipping-the-loonie-s-wings-the-globe-and-mail.md) | +0.5% | +1.5% |
| DXY | 2018-09-25 | [Why today’s Fed action could pummel the loonie - The Globe and Mail](https://feedsoft.ai/events/63273-why-today-s-fed-action-could-pummel-the-loonie-the-globe-and-mail.md) | +0.3% | +1.4% |
| DXY | 2017-09-20 | [Why the loonie took a sudden dive Wednesday - The Globe and Mail](https://feedsoft.ai/events/69197-why-the-loonie-took-a-sudden-dive-wednesday-the-globe-and-mail.md) | +1.1% | +1.9% |
| DXY | 2017-03-12 | [Canadian bonds, loonie brace for U.S. Federal Reserve rate hike - The Globe and Mail](https://feedsoft.ai/events/72217-canadian-bonds-loonie-brace-for-u-s-federal-reserve-rate-hike-the-globe-and-mail.md) | -1.1% | -1.3% |
| DXY | 2022-10-31 | [Canadian dollar slips to six-day low as oil prices fall - The Globe and Mail](https://feedsoft.ai/events/39347-canadian-dollar-slips-to-six-day-low-as-oil-prices-fall-the-globe-and-mail.md) | -0.1% | -2.8% |

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/investing/markets/inside-the-market/article-loonies-woes-deepen-with-attention-focused-on-us-economy/

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