How high will the loonie go? Canadian dollar vs. American dollar


	How high will the loonie go? Canadian dollar vs. American dollar

gingembre

6-7-2007 10:57 AM

3439 views

tags:

canada, usa, economics, money, dollars, currency, parity

gingembre says:

This morning the loonie is at 94.4 cents US and is the topic of much speculation here in Canada. With so much dependence on America choosing Canadian exports due to the usually favorable exchange rate, this rising Canadian dollar is quite a concern here.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/f2ad4cd5-cadd-46cb-a8a3-b79b81f2ffa5/1CA6EAFE-3658-4933-BC8F-57AD5B4F90A0/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.cbc.ca/news/background/economy/loonie.html" href="http://www.cbc.ca/news/background/economy/loonie.html" style="font-size: 11px;">www.cbc.ca</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbc.ca/news/background/economy/loonie.html"><H1 class="headline">The prospect of parity</H1></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbc.ca/news/background/economy/loonie.html"><H3 class="deck">How high will the loonie go? </H3></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbc.ca/news/background/economy/loonie.html"><div align="center"><img src="http://content6.clipmarks.com/blog_cache/www.cbc.ca/img/04AB727E-8F76-4528-BAEE-ECE23B26D7BB" alt="" /></div></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbc.ca/news/background/economy/loonie.html"><P>Ever since the Canadian dollar bottomed out at 61.79 cents US on Jan. 21, 2002, it has been on a seemingly unstoppable charge higher. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbc.ca/news/background/economy/loonie.html"><P>Driven by surging commodity prices, a healthy economy and the prospect of higher interest rates, traders have boosted the loonie's value by 50 per cent in a little more than five years.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbc.ca/news/background/economy/loonie.html"><P>By late May 2007, it had moved above the 93-cent US level — the highest in almost 30 years.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbc.ca/news/background/economy/loonie.html"><P>The question now being asked seriously is whether the Canuck buck will eventually reach parity with the U.S. dollar. The two currencies haven't been worth the same since November 1976.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbc.ca/news/background/economy/loonie.html"><P>The Canadian Labour Congress says the high dollar is the main reason for the loss of 250,000 manufacturing jobs since 2002. An even higher Canadian dollar would further devastate Canada's export-driven manufacturers, it argues. A loonie at parity would make our exports almost 10 per cent more expensive for Americans to buy than they are now.</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/1CA6EAFE-3658-4933-BC8F-57AD5B4F90A0/blog/" title="blog or email this clip"><img src="http://content7.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>