The Bank of Canada’s most recent rate cut has got the loonie down in the dumps. Rate cuts usually help by making borrowing cheaper and giving the economy a little boost, but they also mean lower returns on investments, like government bonds. That can turn off foreign investors, which weakens the currency. What’s making it worse is that the U.S. isn’t cutting rates as quickly as Canada, so more investment dollars are flowing south, pushing the loonie to trade at 70 cents against the U.S. dollar. The obvious downside to this is that it will make U.S. travel more expensive for you. Some experts say that a slight rebound of the loonie could come in 2025 — but don’t bank on it raising too much. The good news is that if you already have investments in U.S.-based securities, you can enjoy higher returns when you convert back to Canadian dollars.