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Loonie’s resilience appears to be flagging

The Canadian dollar has dropped 4.5 per cent year to date, but a combination of weak domestic energy prices and uncertain outlook in the mining sector means that further declines may be in store.

The U.S. dollar value of the loonie has historically tracked the performance of domestic materials stocks (usually with a bit of a lag). This reflects the global investor perception that the Canadian dollar is a hard asset currency.