TORONTO -- The Canadian dollar lost ground Thursday after enjoying a recent uptick from rising oil and gold prices.
The loonie was down 0.41 of a cent at 99.26 cents US.
The strength of the Canadian dollar -- at times flirting with parity against the U.S. greenback this week -- has been a sign of heightened investor appetite for risk amid optimism the U.S. economic recovery is gaining momentum.
Andrew Pyle, a portfolio manager with Scotia McLeod, says he doesn't expect it to hit that mark any time soon.
In fact, he is predicting the loonie will head downward with the upcoming instalment of Stephen Poloz as the new Bank of Canada governor next month.
"My take on this is that the new Bank of Canada governor will probably be more dovish on monetary policy and perhaps more sympathetic to the impact that a high Canadian dollar is having on exports and manufacturing," said Pyle from Peterborough, Ont.
Pyle said it would not be unusual for the loonie to drop to 97 cents US or lower this summer.
That was echoed by TD Bank on Thursday, which forecast that the loonie is in for a rough ride this year despite its recent strength and could drop to as low as 90 cents US by the end of the year.
-- The Canadian Press