The plunge in the Canadian dollar to a thirteen-year low of US$0.69 has forecasters jumping on the bearish bandwagon with increasingly pessimistic forecasts for the year ahead, mainly over fears that the global economy is in a meltdown. We think this is an over-reaction and expect most commodity prices to rebound. If oil prices recover later this year as we anticipate, then that should trigger a rebound in the loonie to US$0.75 by year-end.
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