Toronto - The Canadian dollar is worth nearly as much as its American counterpart, for the second day in a row, closing at 99.4 cents US after posting a high of 100.14 cents earlier in the
day.
This time could be different, It's a trend that experts believe could persist for some time as the signals mount that the U.S. economy is going to remain weak for awhile due to weakness in the U.S.
greenback, and strength in commodity prices, which is pushing up the value of the Canadian dollar -- Financial forecasters believe the Canadian dollar could stay at or above parity for the next year or so, but still easily go back and forth from parity, the Canadian dollar has approached the psychological barrier several times before, and the U.S. dollar won't stay down permanently.
The Canadian dollar is only appreciating in comparison to the U.S. dollar, while other currencies are racing past it. the Canadian dollar has actually been weak against every other currency in the world. We're only strengthening against the US greenback, that is our major trading partner,
The greenback has also dropped due to news that the U.S. Federal Reserve is likely to spend up to US$200 billion, On Treasury bills in an attempt to prod the sluggish American economy, and that's going to cheapen the currency, introduce inflation into the system, as serious problems in the U.S. housing market and sluggish employment numbers are also causing concern among investors in the currency markets, leaving investors unsure of whether to sell off U.S. dollars.
The rise of the loonie has its advantages and disadvantages for Canadians: It will make American goods more affordable and trips to the U.S. become cheaper, but making Canadian goods more expensive to sell to the U.S. thus hurting manufacturers, many of which are located in southern Ontario
No comments: