A stronger U.S. greenback has caused the Canadian dollar to fall for the second consecutive day, reports The Globe and Mail.

The loonie saw a rapid drop yesterday after Bank of Canada Governor Stephen Poloz provided a bleak outlook for the Canadian economy, hinting that interest rates may also fall.

The struggling loonie fell to 88.8 cents U.S. after the Federal Reserve’s policy announcement vaulted the value of the American dollar. It remained at this rate for most of the day.

Under new chair Janet Yellen, the Fed announced that it would be making cutbacks to its monthly bond purchases. The U.S. central bank added that it also planned to make changes to its forward guidance structure.

“The statement essentially caused U.S. yields to move higher and this caused a sell-off in the loonie and movement in to the U.S. dollar,” Knightsbridge Foreign Exchange's Rahim Madhavji said of the U.S. dollar's performance.

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