Weak loonie: Canadians change cross-border shopping habits with steeper exchange rate

Despite a steeper U.S. exchange rate, New Brunswick licence plates matched – and at times outnumbered – the count of U.S. plates outside several Calais, Maine, retailers on Wednesday.

 

The Canadian dollar’s value dipped below 70 cents U.S. this week for the first time since March 2020.

 

Regardless, Canadian shoppers including Donna Mackenzie feel there’s value in making the trip even with the widening difference in dollar values. MacKenzie, who lives just across the border, said while her U.S. shopping visits have dropped due to the weak dollar, they haven’t stopped completely.

 

“I don’t shop as much,” said MacKenzie, “But it’s better than having to go to Saint John to get something you want.”

In 2024 the Canadian dollar has slipped more than seven per cent against the U.S. dollar. The loonie’s decline picked up speed this past fall when its U.S. value stood at around 75 cents.

 

Canadian shopper Megan Haley said she’s only been purchasing discounted items from the U.S. as of late because of the exchange rate.

 

“Over (in the U.S.) sometimes I find things, even with the lower dollar, cheaper to buy because of inflation in Canada,” said Haley.

 

U.S. residents are also watching the Canadian dollar’s recent developments, wondering how low it may go. The loonie’s all-time low was in January 2002, at U.S. $0.6179

 

“I don’t know honestly how Canadians can make the ends meet, it’s really tough,” said Jim Grippe, an American who lives part of the year on Campobello Island. “I feel sorry for the Canadians, they’re getting nailed on the American side of the border.”

 

 

 

 

This article was first reported by CTV News