The Canadian greenback has been in a little bit of a hunch over the previous few weeks, lately sinking to round US$0.71 or so. Undoubtedly, because the Financial institution of Canada continues to cut back rates of interest alongside the Fed, the loonie won’t have an opportunity to strengthen versus the U.S. greenback. And with the Canadian economic system going through challenges by the hands of tariffs and pressures on the value of oil, there’s definitely potential for extra ache within the loonie earlier than the subsequent massive bounce.

Both means, varied pundits assume that the loonie would possibly truly be in for a little bit of a break because it seems to be to realize a few cents going into the brand new yr. And whereas the Canadian economic system appears to be going through greater than its justifiable share of headwinds, I wouldn’t be too stunned to see the loonie rise to the US$0.73–0.75 vary by subsequent summer season. Certainly, a acquire of some cents to just about a nickel won’t appear to be a lot, but it surely may imply an incredible deal for the companies that make most, if not all, of their cash on this aspect of the border.

Who is aware of? If the Financial institution of Canada began its rate-cutting cycle first, it may additionally be the primary to hit the pause button. After all, there’s additionally an opportunity that the Fed takes on a barely extra hawkish tilt earlier than the Financial institution of Canada does. And if that occurs, there may be the danger of extra ache for the Canadian greenback. Both means, listed here are two shares I’d try because the U.S. greenback seems to be to weaken a bit versus the loonie over the subsequent yr.

Magna Worldwide

Magna Worldwide (TSX:MG) is a Canadian auto-part maker that’s beginning to choose up pace, now up over 26% up to now three months. Undoubtedly, the tariff fears have been probably overdone, and with a lot harm already performed to the inventory, buyers have extra cause to be constructive, particularly because the auto scene seems to be to start out choosing up once more.

With a good previous quarter and sufficient administration confidence to hike its steerage, I’m inclined to start out viewing MG shares as much less of a price entice and extra like a deep-worth play. The inventory trades at 11.1 instances trailing price-to-earnings (P/E) or about an 8 instances ahead P/E. With a pleasant 4.2% dividend yield and the means to learn vastly from a stronger Canadian greenback, I do assume the trail of least resistance is perhaps larger in 2026.

Certainly, a stronger Canadian greenback would assist scale back enter prices and add to the corporate’s margins, which additionally stand to learn from ongoing working effectivity efforts.

Fortis

Fortis (TSX:FTS) is one other Canadian inventory that wouldn’t thoughts a stronger loonie. After all, the utility does enterprise on each side of the border. Nonetheless, a stronger loonie would permit the agency a bit extra buying energy because it continues to embark on its capital expenditure plan. To not point out a stronger loonie would make the U.S. greenback debt load appear even much less hefty.

Both means, I view Fortis as a gentle dividend payer that’s price shopping for at 20.3 instances trailing P/E with its 3.6% dividend yield. The most recent quarter was extremely good, and it is perhaps simply the beginning because the dividend grower seems to be to maintain investing in its future development.