With the Canadian dollar hovering around its lowest point in nearly 11 years, the ripple effect is expected to be significant on a weakening Canadian economy, as oil prices remain in a slump and the greenback continues to gain strength.

The loonie lost 0.53 of a cent on Wednesday, finishing the day at 76.70 cents US -- a level it hasn't reached since Sept. 1, 2004.

It was a troubling economic cocktail: The loonie was dragged down by a drop in oil prices to $50 a barrel for the first time in months and an American dollar rising on strong economic data.

TD economist Leslie Preston told CTV News Channel that the combination of these factors was too difficult for the Canadian currency and economy to overcome.

"All of these are negative for Canadian equity markets and the Canadian dollar, and really the negatives seem to be piling on in terms of Canada's outlook," said Preston.

On July 15, Bank of Canada Governor Stephen Poloz cut interest rates in response to the country's sagging economy.

Experts believe the move only accelerated the loonie's steep decline.

"That's probably going to continue to drive the Canadian dollar weak, we think we're going from 77 cents today to somewhere down to 71 cents," said Craig MacAdam, a portfolio manager at Aurion Capital Management.

Preston also predicts that the Canadian dollar will continue its tumble in 2015.

"(It) would weaken off a bit further as we go through the year our own view is around 75 cents would be a low," said Preston.

"We're really not too far off at this point," she added.

And as the loonie goes down, the price of most imports goes up.

However, there is a silver lining: a weak Canadian dollar could boost the manufacturing sector and exporters.

"When the Canadian dollar declines, all Canadian exports get a boost in their competiveness," said Preston.

"At this point in the economic cycle we are looking for exports to make more of a contribution and the boost that exporters will receive from a weaker Canadian dollar is welcome," she said.

Tourism has also received a lift from the country's devalued currency, as visitors are coming to Canada to enjoy increased spending power.

But Preston isn't predicting long-term doom and gloom for the dollar. She said the loonie should recover from its lowest point in more than a decade to about 85 cents in 2016.

"We would expect next year for the Canadian dollar to appreciate slightly as economic fortunes in Canada start to improve and oil prices start to rise again," said Preston.

"We're certainly not calling for a return to a days of parity with the U.S. dollar, but certainly, as we look to the end of next year, levels (could be) above where they are now," she added.

With a report from CTV's Richard Madan