Tweet
I didn't see a thread on this but to all the Americans that made fun of our Canadian money -na na na na na na -- To the rest of the Americans, you have my sympathies as you see the collapse of your purchasing power-- ITs great for Canadians though -- I might even head to the US to buy a car LOL-- Its nice to think that a thousand bucks of my money is worth a thousand of yours
.
Going from 61 cents to equality in just 5 years has been a crazy ride. Any thoughts where this ends? Will the US recover or begin to follow economic policies that support the currency? Is there arguments that the drop in value of the US currency against most currencies is good?
TORONTO: The Canadian dollar closed daily trading above parity with the U.S. dollar Friday for first time since November 1976.
The Canadian currency closed at 100.52 US cents, gaining 0.66 of a cent. The U.S. dollar stood at 99.48 Canadian cents, down 0.66 of a cent.
That country's currency — named for a Canadian bird, the loon, on the one-dollar coin — has been on a spectacular tear since the U.S. greenback began to weaken in the face of a credit crisis sparked by the subprime mortgage market.
The loonie reached parity with its U.S. counterpart for the first time in 31 years on Sept. 20. Since then, it has risen above par during intraday trading a number of times but has failed to close above that level until Friday.
Just five years ago, in January 2002, the loonie hit a record low of 61.79 US cents.
Helping the dollar's rise was a Statistics Canada report that the economy grew by 0.2 percent in July, the same rate as in June.
While the rising currency has been a boon to cross-border and online shoppers, it has also hurt Canada's manufacturing sector, concentrated in Ontario and Quebec, and anyone else competing for sales in the U.S.
Nearly 250,000 manufacturing-related jobs have been cut over the past three years in an attempt to reduce costs.
"The sectors that obviously get hurt the most are the ones most linked to the United States. The forest products sector has certainly been very hurt by this, (also) the smaller auto parts companies," said Scotiabank economist Carlos Gomes.
The Canadian currency closed at 100.52 US cents, gaining 0.66 of a cent. The U.S. dollar stood at 99.48 Canadian cents, down 0.66 of a cent.
That country's currency — named for a Canadian bird, the loon, on the one-dollar coin — has been on a spectacular tear since the U.S. greenback began to weaken in the face of a credit crisis sparked by the subprime mortgage market.
The loonie reached parity with its U.S. counterpart for the first time in 31 years on Sept. 20. Since then, it has risen above par during intraday trading a number of times but has failed to close above that level until Friday.
Just five years ago, in January 2002, the loonie hit a record low of 61.79 US cents.
Helping the dollar's rise was a Statistics Canada report that the economy grew by 0.2 percent in July, the same rate as in June.
While the rising currency has been a boon to cross-border and online shoppers, it has also hurt Canada's manufacturing sector, concentrated in Ontario and Quebec, and anyone else competing for sales in the U.S.
Nearly 250,000 manufacturing-related jobs have been cut over the past three years in an attempt to reduce costs.
"The sectors that obviously get hurt the most are the ones most linked to the United States. The forest products sector has certainly been very hurt by this, (also) the smaller auto parts companies," said Scotiabank economist Carlos Gomes.
Going from 61 cents to equality in just 5 years has been a crazy ride. Any thoughts where this ends? Will the US recover or begin to follow economic policies that support the currency? Is there arguments that the drop in value of the US currency against most currencies is good?
I was so hoping this was a copycat thread.
Comment