Loonie hits four-month low as Bank of Canada holds key interest rate

The value of the loonie is at a four-month low compared with the U.S. dollar, but experts say Canadian consumers shouldn't expect their wallets to take a major hit.

As of Wednesday afternoon, the Canadian dollar was trading at 72.46 U.S. cents, the weakest level since early November.

CIBC chief economist Avery Shenfeld says it's reflective of the U.S. Federal Reserve getting more aggressive on interest rate hikes while the Bank of Canada holds its key rate steady for the first time in a year.

While import cost hikes could lead to higher prices for items like fresh fruits and vegetables, he says the effect on Canada's inflation rate should be minimal.