[LINK] "Loonie hovers near 97 U.S. cents"
Oct. 13th, 2009 12:46 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
rfmcdonaldAgain?
The strong Canadian dollar won't do good things for exporters, the overwhelming majority of which send their goods to the United States, but at least Canada's economy isn't nearly as dependent on a weak currency as the Italian economy is. Right?
The Canadian dollar extended gains to hit a new one-year high against the U.S. dollar as oil prices surged and in the wake of strong Canadian jobs data late last week.
The Canadian dollar rose has high as 97.39 U.S. cents early Tuesday morning, and was trading around 97.15 U.S. cents at 8:10 a.m.
The Canadian dollar continued to get a boost from strong demand for oil and other commodities, as well as Canada's relatively robust economy compared to its still-ailing neighbour to the south.
As long as U.S. policymakers keep interest rates near zero, the Canadian dollar and many other currencies such as the euro are likely to keep on their upward trajectory, with the loonie possibly reaching parity with its U.S. counterpart by the end of the year, currency analysts said.
"The rebound in commodity prices in general has been really helpful to the Canadian dollar," said Andrew Wilkinson, senior analyst at Interactive Brokers Group in Greenwich, Connecticut. "It's also benefited from U.S. dollar weakness based on the fact that U.S. policymakers have rolled out a red carpet of easy money as far as the eye can see."
The strong Canadian dollar won't do good things for exporters, the overwhelming majority of which send their goods to the United States, but at least Canada's economy isn't nearly as dependent on a weak currency as the Italian economy is. Right?
