No, we are not referring to the U.S. dollar, but rather its Canadian counterpart, also known as the loonie. The loonie is on the list of currencies being drubbed by falling commodities prices and the rising U.S. dollar. Year-to-date, the CurrencyShares Canadian Dollar Trust (NYSE: FXC) is down 12.4% and the sliding may not be over.

The Bank of Canada has been a reliable arm in guiding the Canadian economy, writes Luke Kawa for Bloomberg. For instance, the central bank was among the first to adopt a formal inflation target and has enjoyed success in achieving its targets. [Canada ETF Back on Track with Economy Recovering]

The country also enjoys large natural resource reserves. As we have witnessed, Canada’s oil production could either lift or weigh on the economy, depending on the energy market. Additionally, as we hear more about droughts and dry weather conditions, Canada’s freshwater reserves, which account for 20% of the world’s freshwater, could come into play.

But at the moment, the loonie looms large for Canada ETFs and that could prove to be a drag on those funds and the broader Canadian economy. In fact, some analysts see an extended, multi-year period of loonie weakness ahead.

Persistent downward pressure in Crude Oil has continued to exert downward pressure on the Canadian Dollar. Canadian GDP came in at -.08% for the first quarter of 2015 and -.05% for the second quarter. The oil rich provinces of western Canada are seeing higher unemployment as the energy industry sheds jobs. Still, there are some positive signs ahead for the Canadian economy. The GDP for June came in at a positive 0.5%. Housing prices in Toronto and Vancouver continue to climb. Canadian voters will be going to the polls on October 19th. There is currently a very tight three-party race, and economic news could very well determine if voters return the Conservative party to power or if they elect the Liberals or New Democratic Party candidates,” according to OptionsExpress.