The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Canadian dollars, or loonies, sit on its American counterpart on Thursday Sept. 20, 2007 in Montreal.
Canadian dollars, or loonies, sit on its American counterpart on Thursday Sept. 20, 2007 in Montreal.
(Paul Chiasson/The Canadian Press)

SCOTT BARLOW

Why a strong U.S. dollar could hurt Canadian bank stocks

ROB Insight is a premium commentary product offering rapid analysis of business and economic news, corporate strategy and policy, published throughout the business day. Visit the ROB Insight homepage for analysis available only to subscribers.

Traditionally, the automotive and resource sectors have been the ones most affected by Canadian dollar exchange rates. Since 2010, however, it has been bank stocks and Canadian government bonds that have moved most in accordance with the loonie, and may have the most to lose if the greenback continues to rise.