'I'm bullish on commodities': Portfolio manager on the state of the Canadian dollar

One portfolio manager believes the Canadian dollar is soon to dip, but that a bullish approach to commodities and the sale of U.S. assets could benefit investors as the loonie recovers later this year.

Ryan Lewenza, portfolio manager of Turner Investments at Raymond James, says the Canadian dollar value is “largely range-bound” between the low to upper 70s cents U.S.

“The U.S. dollar has just been on a tear,” Lewenza told BNN Bloomberg, during an interview on Tuesday. “It’s up against the yen — the yen is down 10 per cent, the British pound, all major global currencies are down and it’s because the Fed (U.S. Federal Reserve) is pushing out when they’re expected to cut.”

Lewenza explained that, at the beginning of the year, the Fed was expected to cut six times. “And now with inflation remaining hotter, it’s pushing that out. So when U.S. interest rates are higher than Japanese interest rates or Canadian interest rates, investors flood in.”