After rising nearly 20% through the end of September, the US dollar fell about 7% in the fourth quarter of 2022. Economists at the Bank of Montreal expect the dollar to weaken further in 2023 to USD/CAD TO. WE SEE AVERAGE REQUIREMENTS UNDER 1.33 IN 2023 „We expect further weakening next year as the Fed ends its most aggressive rate-setting campaign by a major central bank. The Canadian dollar is expected to benefit modestly from the move, though perhaps less than other majors currencies as the BoC is almost done with its interest rate hike. „The Loonie is likely to average slightly lower in 2023 than this year due to a significant pullback in late 2022 (we expect the rate to average just below $1.33 next year). „Stretch call: Weak USD and Chinese domestic recovery will help support commodity prices even in the north – the average oil price in 2023 (about 90 USD) will be higher than today in the midst of a US recession.”