Loonie just a tiny sliver away from parity with greenback as commodities rise

The Canadian Press ~ The News
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The Canadian dollar is flirting with parity with the U.S. dollar, a level it has not hit since July 2008.
The U.S. dollar has been driven downward in recent weeks by rising oil prices and continued economic instability.
The loonie, on the other hand, has been supported by the relative strength of the Canadian economy and confidence that Canada has not taken on more debt than it can handle, worries that persist for the United States and many European nations.
At mid-morning, the currency was up 0.46 of a cent to 99.63 cents US. Last week it rose 1.75 cents US on strong economic data and surging commodity prices.
Economists don't expect the loonie to rise quickly to the heights it reached around US$1.10 back in November 2007, but rather feel it will waver around parity for a while.
A high loonie is a boon to cross-border shoppers but a curse for many manufacturers and exporters as the price for their goods becomes less attractive to international buyers, especially in the U.S., Canada's biggest market.

Geographic location: United States, Canada

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Recent comments

  • Laughable
    July 02, 2010 - 13:22

    Oil Crud : What do you propose has been done wrong (and by whom) that will drive us to another recession?

  • Oh
    July 02, 2010 - 13:20

    Just in time to crash and burn again. This is a joke. Oil at $85 a barrel, the loonie at par. All leading indicators of the impending fall into recession/depression once again. Did we not learn?

  • what odds
    July 02, 2010 - 13:12

    The Private banks laughable for one need to go. Private sector banks are interested in creating more debt and more debt only because without debt they can not operate a profitable business. the more debt there is, the more money the banks need to make, so prices of goods rise as a result. more money is printed, inflation surges and they call it economic growth when what it really is is just an illusion of prosperity.

    What we need is a society with the common sense enough to know that sustainability and standard of living are far more important than profit which is nothing more than resources that are assigned a monetary value that is derived out of thin air despite what economists and experts will tell you.

    Even if this isnt the case we need to get the hell off of Oil. Oil is a substance more deadly than Heroin with the bloodshed, sweat and tears it has caused.

  • Not
    July 02, 2010 - 13:11

    Look at it this way. Every time we see an increase in the price of oil the dollar goes up. The price of gas at the pumps goes up, the price for food goes up, the cost to ship, manufacture or run a business goes up. When costs go up people start to see jobs end. We went through this in the 70's the 80's the 90's and most recently two years ago. From the looks of things a few want to pad bank accounts once again and shove the rest further down now that we see a shimmer of recovery. Oh well, we will never learn. I guess people like to be on EI and welfare, pay $1.50 a litre for gas and see homes and business fade away. We must if we sit back and let it happen all the time.

  • Laughable
    July 01, 2010 - 20:06

    Oil Crud : What do you propose has been done wrong (and by whom) that will drive us to another recession?

  • Oh
    July 01, 2010 - 20:03

    Just in time to crash and burn again. This is a joke. Oil at $85 a barrel, the loonie at par. All leading indicators of the impending fall into recession/depression once again. Did we not learn?

  • what odds
    July 01, 2010 - 19:50

    The Private banks laughable for one need to go. Private sector banks are interested in creating more debt and more debt only because without debt they can not operate a profitable business. the more debt there is, the more money the banks need to make, so prices of goods rise as a result. more money is printed, inflation surges and they call it economic growth when what it really is is just an illusion of prosperity.

    What we need is a society with the common sense enough to know that sustainability and standard of living are far more important than profit which is nothing more than resources that are assigned a monetary value that is derived out of thin air despite what economists and experts will tell you.

    Even if this isnt the case we need to get the hell off of Oil. Oil is a substance more deadly than Heroin with the bloodshed, sweat and tears it has caused.

  • Not
    July 01, 2010 - 19:47

    Look at it this way. Every time we see an increase in the price of oil the dollar goes up. The price of gas at the pumps goes up, the price for food goes up, the cost to ship, manufacture or run a business goes up. When costs go up people start to see jobs end. We went through this in the 70's the 80's the 90's and most recently two years ago. From the looks of things a few want to pad bank accounts once again and shove the rest further down now that we see a shimmer of recovery. Oh well, we will never learn. I guess people like to be on EI and welfare, pay $1.50 a litre for gas and see homes and business fade away. We must if we sit back and let it happen all the time.