Canadian advisors running their own firms are feeling relatively unscathed by a fluctuating loonie, according to a new Bank of Montreal survey.
The survey found that, overall, 54 per cent of Canadian business owners feel the shifting dollar will not impact them. Those running small companies - less than 50 employees - are slightly more confident with 55 per cent of respondents feeling the same way.
Results varied across sectors with 76 per cent of those polled from business and financial companies; 61 per cent from energy companies and 57 per cent from service sector companies saying they felt they wouldn't be affected by a weak Canadian dollar.
In contrast, the survey found that 27 per cent of business owners felt their companies would benefit from a weak dollar, while 18 per cent believed they would be worse off as the loonie falters against the U.S. dollar.
"Certain industries tend to benefit from a weaker currency — it could be a mixed blessing for some and for others it could be a curse," BMO chief economist Doug Porter
told the Canadian Press, adding that producers tend to benefit, while consumers lose out in this environment.
BMO predicts the loonie will drop to as low as 87 cents U.S. by the end of 2014 and stay steady between 85 to 86 cents through 2015.
Fluctuation is the name of the game for the Canadian dollar these days. The loonie fell as low as 89 cents in March and rose as high as 93.99 cents in early January. Over the last few weeks, it has sat at about the 90-cent mark.
The survey - which was conducted by Pollara with 503 Canadian business owners between March 7 and 24 - found that Altantic Canada (65 per cent) and Alberta (55 per cent) were more likely to say the fluctuating dollar would not impact business, while Saskatchewan and Manitoba (32 per cent) and British Columbia (31 per cent) said companies would do better with a weaker loonie.
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