At the end of April, it cost $1.4058 to purchase one U.S. dollar, according to the Bank of Canada.
Today, that same U.S. greenback would only cost $1.2738—a drop of 9.4 percent.
The chief investment strategist for BMO Capital Markets, Brian G. Belski, is expecting the loonie to become even stronger against the U.S. dollar in the near term.
According to a report he released today, this will be linked to more aggressive fiscal policies by the Biden administration.
These include additional economic-stimulus measures and greater controls on the COVID-19 pandemic.
"While historically a strengthening Canadian dollar has been driven by rebounding commodity prices, recent strength has been more driven by a consumer-led cyclical rebound," Belski wrote.
That's reflected in a five-year examination showing that the correlation is greater between consumer discretionary and industrial activity and the value of the currency than how it fares in comparison to more traditional resource sectors.
Cyclical industries are those that show higher revenues when the economy is booming and lower revenues in periods of economic contraction.