Canadian dollar above 99 cents...


#juan
#1
The loonie's strong flight continued Tuesday night as it crept above 99 cents US in overnight trading after North American markets closed.
Earlier, it had closed in regular trading above 98 cents US for the first time since Jan. 25, 1977. The Canadian dollar gained 1.36 cents to close in regular trading at 98.64 cents US.
The loonie's big move was helped along by the Federal Reserve's unexpectedly large cut in a key interest rate Tuesday afternoon.
The rate cut left the U.S. federal funds rate at 4.75 per cent, while the counterpart rate in Canada remains at 4.50 per cent. That dramatically narrowed the spread between the two rates and made Canadian dollars a lot more attractive.
Talk of "whether" the dollar would hit parity with the U.S. currency seemed to be supplanted by talk of "when" it would reach that milestone.
The Canadian dollar's rise against the U.S. greenback has been stunning up 14 per cent so far this year and up about 60 per cent since early 2002.
How far will it go? Some pundits are saying that the Canadian dollar will hit a buck twenty U.S.. Any comments?
 
karrie
#2
lol... remind me of a joke I saw yesterday...

"Why did God create economists?"
"Someone had to make weathermen look accurate."
 
Kreskin
#3
The Conservative's growing support in Quebec, or perhaps the separatists diminished support, can't be hurting our dollar either. Right now we've got a lot of stars aligned.
 
Cosmo
#4
Woohoo!! Above 99 cents??? Sorry folks, gotta go shop online for a while I'll be back when the dollar tanks again.

Wonder if this is cuz Harper is so busy trying to become Bush's "Mini Me"? If so, guess it's been good for something.
 
Toro
#5
Quote: Originally Posted by karrieView Post

lol... remind me of a joke I saw yesterday...

"Why did God create economists?"
"Someone had to make weathermen look accurate."

What's the definition of an economist?

An accountant without the personality.
 
Nuggler
#6
We used to carpool shopping years ago when the Cdn. dollar was almost par.

Over to Ogdensburg NY to pick up booze, smokes, clothes, fishin stuff, everything.

When our dollar tanked, over the years, the "Burg" saw some big hurt. A lot of bars and restaurants, mostly mom and pop operations, closed.

Who knows what'll happen now. All our cars are too small to carpool ..........

Hire a bus??? Could happen. Should give the local bus line a call and see how they feel about that.

...........................or not.



 
DavidB
#7
Quote: Originally Posted by #juanView Post

Any comments?

I sure didn't expect the Canadian dollar to go up so high so fast but I think it is a good thing. It is a sign of a strong economy. Although perhaps it is not as strong as we think; how is it doing compared to other currencies? If it is going up just because the US dollar is crashing, period, then we still have a lot of work to do to improve our economy. (I usually just keep my eye on it relative to gold, which is a pretty good--international--standard.)

Regards.


David
 
YoungJoonKim
#8
Its NOT a good sign.
Its "United States's" currency that's falling because of house market, weakening industry, foreign trade deficit.
Canada can stay strong because of crazy exhibition of oil in Alberta..which takes more natural gas to produce less energy...oil.

U.S.A.'s economy and their strong dollar is important to Canadian auto-industry workers.
We need U.S.A. to,...be strong *cough*
 
Ten Packs
#9
Quote: Originally Posted by DavidBView Post

Although perhaps it is not as strong as we think; how is it doing compared to other currencies? If it is going up just because the US dollar is crashing, period, then we still have a lot of work to do to improve our economy. (I usually just keep my eye on it relative to gold, which is a pretty good--international--standard.)
David

You are thinking correctly, Dave - it says more about the US $ than it does about ours. It's not that we have suddenly become "King Of The Hill". The US dollar is reacting in a way that has been predicted for a long time - The Republican's penchant for "Buy Now - Pay Later" is coming home to roost. They are floating in a sea of red ink, and there's a leak below the waterline. Even the Democrats would have had a tough time borrowing on their Future the way this last bunch has.

It's good for us in ONE way.... we buy so much from the Americans that imports will eventually reflect the so-called "high dollar". But it's also going to kick the crap out of our tourism, our US-bound exports, and so on. The BC forest industry is ALREADY taking it on the chin - those are good-paying jobs - and when a Forestry worker is hitting the skids, that's a LOT of domestic items that he will not buy, so the cycle perpetuates itself. Many will suffer deeply.

There's no perfect answer...
 
#juan
#10
Quote: Originally Posted by DavidBView Post

I sure didn't expect the Canadian dollar to go up so high so fast but I think it is a good thing. It is a sign of a strong economy. Although perhaps it is not as strong as we think; how is it doing compared to other currencies? If it is going up just because the US dollar is crashing, period, then we still have a lot of work to do to improve our economy. (I usually just keep my eye on it relative to gold, which is a pretty good--international--standard.)

Regards.


David

Our dollar is up because we are a resource-based economy. There is a demand for our products....I don't think Harper can take much credit for the dollar rising unless he wants to take the blame for when it was dropping. For all of his faults, Chretien balanced the budget and paid down some of the debt so I don't think all the credit should go to the Tories.
 

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