Loonie hits parity
Posted April 6, 2010 6:31 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – It’s been even with the U.S. dollar this morning, so now the focus turns to just how long the loonie will stay up and even how high it could go.
The loonie last traded at par with the greenback on July 22, 2008, 11 days after crude oil reached a record $147.27 a barrel. Canada has benefited since the end of the recession from rising demand for copper, gold, wheat and oil from the U.S. and emerging economies such as India and China.
But only a year ago, the Canadian dollar was worth just over 77.50 cents U.S. Most analysts are of the opinion that the steady climb back to parity can be sustained for at least the summer.
We’re also going to benefit from higher interest rates than our biggest trading partner to the south which will have foreign money buying our federal and provincial bonds.
On the good side, are the obvious things, cross border shopping and vacations for us are more affordable. On the down side tourism-related businesses could suffer here if foreigners stay home and many of our manufactured products could end up costing more. However some industries have re-tooled over the past couple of years and say they are now better prepared to deal with an at-par dollar.
