CIBC predicts loonie back above par in 2014

Written By Unknown on Senin, 08 Juli 2013 | 22.39

CIBC sees brighter days ahead for the Canadian dollar, which has been under pressure recently amid continued weakness in the global economy.

A new report from CIBC World Markets says the loonie should stay within a couple of cents of current levels for the rest of the year, then rebound to parity with the U.S. greenback by end of 2014.

The bank's chief economist, Avery Shenfeld, says disappointing global growth has driven the currency down to the 95-cents US level quicker that the bank had expected.

However, he says that while normal volatility will likely see it weaken another cent of two from time to time this year, the bank views to current bout of softness as a buying opportunity ahead of likely appreciation in 2014.

Shenfeld says that will be driven by a more favourable external environment in the coming year, particularly growing strength in the U.S. economy.


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