The Canadian dollar plunged below 72 cents U.S. for the first time since May 2004 on Thursday, and forecasters expect the slump to continue.

After a series of 11-year lows in recent weeks and months, the loonie was trading at 71.83 cents U.S. by mid morning, down nearly three-quarters of a U.S. cent from Wednesday’s close. The dollar closed at 71.68 cents U.S. Thursday afternoon.

CIBC senior economist Royce Mendes believes the trend will proceed until the end of March, when he expects the Canadian dollar to rise slowly until the end of 2016.

“Our forecast is for the loonie to weaken a little more,” Mendes said. “We’re looking for it to hit 70 cents.

The drop means Canadians booking late Christmas holidays or March breaks will be more likely to travel within Canada rather than crossing the border, according to Mendes.

“We’ve already seen some deterioration in travelers to the U.S., although we haven’t seen much pickup the other way yet,” Mendes said.

“I think what it means is if you’re booking a March break holiday, you’re more likely to choose a Canadian destinations. If you’re going to the U.S., you’re paying a 30 per cent more premium.”

Canada’s currency has been affected by a number of factors, many related to the strength of the American dollar as well as weak global market conditions for key exports such as oil, gas and other commodities.

On Wednesday, the U.S. Federal Reserve raised interest rates for the first time since 2006. The growth of the U.S. dollar has continued the loonies’ woes.

“It’s at an 11-year low and as the greenback strengthens, it’s definitely going to get weaker,” said Penelope Graham, editor of Ratesupermarket.ca.

TD Bank’s deputy chief economist, Derek Burlton, also predicted on Wednesday that the loonie will drop to approximately 71 cents U.S. before recovery begins.

Burlton believes the weakening loonie could see fewer Canadians holidaying in the U.S. in the near future.

“The trips will happen, (but) I think there may be some efforts to mitigate some of the impact on costs from a weaker Canadian dollar,” he said.

In Florida, where 4.2 million Canadians vacation annually, Canadian visits are down 1.4 per cent for the first three quarters of the year, even though overall tourism is up by 5.5 per cent.

Online reaction was swift.

“Damn, a loonie is less than three quarters....that’s rough,” wrote @stargateship.

“There goes the US vacation,” Ontario resident @Quarkybirdy said in response to the news.

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“My winter vacations are getting more and more expensive!” Toronto managing director Norman Levine wrote.

With files from The Canadian Press