Thursday, September 20, 2007

Loonie at $0.9997USD

The Loonie reached parity with the US dollar today for the first time since 1976:

"TORONTO - The Canadian dollar moved decisively above 99 cents US Thursday, flirting with parity against the faltering American dollar for the first time since November 1976.

The currency opened North American trading at 99.42 cents US and moved up as high as 99.96 cents at 8:15 a.m. EDT, before easing back slightly to 99.77 cents, up 1.27 cents from Wednesday."

Depending on what you're doing with your money, this is very good news indeed. It will probably continue this way for awhile, maybe going as high as $1.13* in the next year (before the next US election). As I understand it, it's an artificial weakness, the USD being kept low by design in order to attract foreign spending and solve their trade deficit. So it won't last forever. But meanwhile, start your online shopping engines!

Edit: I wonder how long it will take some wingnut to credit Harper for this? Hahahahaha!

Edit #2: StageLeft makes a good point in the comments; some of the language being used in reporting this suggests the loonie is rising, which isn't the case. The loonie is pretty steady, it's the falling US Dollar that's causing the loonie to look so robust.

*$1.13 is my estimate, based on everything I've read and heard