Canadian Dollar at 28 year high

[Jersay]

TORONTO (Reuters) - The Canadian dollar hit its highest level in 28 years against the U.S. currency on Friday, helped by firm domestic economic growth data and expectations that U.S. interest rates are close to topping out.

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The Canadian currency pushed past C$1.1193 to the U.S. dollar, or 89.34 U.S. cents, to its highest point since June 1978. It has risen more than 40 percent against the greenback in just under four years.

The last time the Canadian and U.S. dollars were at par was November 1976.

Statistics Canada said on Friday the economy grew 0.2 percent in February, matching forecasts and maintaining expectations that there will be at least one more interest-rate hike in Canada.

In the United States, first-quarter growth came in slightly below expectations, confirming the outlook that U.S. rates may not rise much more.

Surging crude oil and metal prices have also supported the Canadian currency because the country is rich in resources.

http://news.yahoo.com/s/nm/20060428/wl_canada_nm/canada_markets_canada_dollar_col

 

[Daz_Hockey]

RE: Canadian Dollar at 28

thats not a good thing......not for me anyway...I used to be able to know I could get at least $2.15 for my pound, so it was real value for money for me

 

[BitWhys]

4.8% is "slightly below expectations"????

reuters :roll:

 

[Toro]

RE: Canadian Dollar at 28

Economists were expecting 4.9%.

 

[BitWhys]

LOL!

well that explains it.

 

[Toro]

RE: Canadian Dollar at 28

That's why they said "slightly"

 

[BitWhys]

who, btw? IMF has it pegged at just over 3. 4.9 worldwide.

 

[Toro]

RE: Canadian Dollar at 28

Who what? IMF what?

 

[BitWhys]

who projected US growth at 4.9 for 2006?

 

[Daz_Hockey]

RE: Canadian Dollar at 28

oh god, u guys are getting all technical, cant we all just trade in groats?

 

[Toro]

Re: RE: Canadian Dollar at 28 year high

who projected US growth at 4.9 for 2006?

A consensus of economists in the United States as compiled by a market research firm.

 

[BitWhys]

I guess you mean bloomberg. fair enough.

4.8 vs 2.4 and the loonie rises. must be a seasonal thing. guess we'll have to learn to live with it.

 

[Toro]

RE: Canadian Dollar at 28

Growth in Q2 will slow, maybe to 3-3.5%

Growth was strong in Q1 partly because there was spending deferred from Q4/05 last year when the print was 1.7%.

 

[tracy]

I'm not thrilled with the dollar.

 

[Roger]

Well, that's shoots incoming tourism in the foot, but at least we won't get killed with the exchange going southbound.

 

[#juan]

Canadian Dollar Rises Above 91 Cents for First Time Since 1978

May 9 (Bloomberg) -- Canada's dollar rose above 91 U.S. cents for the first time since 1978 as surging gold and oil prices boost prospects in the world's eighth-largest economy.

The Canadian dollar strengthened against the most actively traded currencies tracked by Bloomberg News, including the euro, British pound and New Zealand dollar, on speculation the Canadian economy may get more support from commodities, which account for 35 percent of Canada's exports and about 10 percent of its C$1.09 trillion ($990 billion) economy.

``It's again the same old story,'' said Firas Askari, head currency trader at BMO Nesbitt Burns in Toronto. ``Gold has hit a new record, and oil is trading higher. All these factors are fueling gains in the Canadian dollar.''