Lagging loonie highlights importance of portfolio currency strategy

As Dale Jackson writes for BNNBloomberg.ca, currencies fluctuate. What matters is how well your portfolio can adapt to those fluctuations.

After touching a new two-year low of 73.01 cents to the U.S. dollar Monday, the Canadian dollar has far less international buying power than June of 2021 when it topped 83 cents.

On the bright side; it’s still stronger than just over a year before that when it dipped below 70 cents at the onset of the pandemic.

The currency market is volatile these days as central banks use their monetary levers to wrestle inflation, but the reasons don’t really matter for long-term investors.