The Canadian dollar is the strongest it’s been since April and exceeded parity with the US dollar in morning European trading. The Canadian dollar touched a high of C$0.9980 against the U.S. dollar, or $1.002.
The move came after the U.S. dollar hit a 10-month low against an index of currencies when Singapore unexpectedly tightened policy by letting its currency strengthen. Canada has also seen a rise in prices for commodities it exports.
The Canadian dollar has since retreated from that high but is still trading at its highest level since the spring at 99.7 cents.
What does this mean?
Canadians are increasingly shopping in the US where it is becoming cheaper as a result of the near parity. And this trend is expected to continue.
The US government is expected to inject more money into the economy as the economy and dollar remain weak. As such, the loonie will enjoy prosperous times. As long as the Canadian dollar remains high, purchases abroad will come with a discount and exporters will see a boost in their bottom line.
In related financial news:
The S&P/TSX Composite Index is as high as it’s been since September 2008. International trade, which Canada plays a big role in regards to raw materials, is on the rebound, reports out of China indicate.
All indications are that the Canadian dollar will remain at near parity with the US dollar for the foreseeable future.
The move came after the U.S. dollar hit a 10-month low against an index of currencies when Singapore unexpectedly tightened policy by letting its currency strengthen. Canada has also seen a rise in prices for commodities it exports.
The Canadian dollar has since retreated from that high but is still trading at its highest level since the spring at 99.7 cents.
What does this mean?
Canadians are increasingly shopping in the US where it is becoming cheaper as a result of the near parity. And this trend is expected to continue.
The US government is expected to inject more money into the economy as the economy and dollar remain weak. As such, the loonie will enjoy prosperous times. As long as the Canadian dollar remains high, purchases abroad will come with a discount and exporters will see a boost in their bottom line.
In related financial news:
The S&P/TSX Composite Index is as high as it’s been since September 2008. International trade, which Canada plays a big role in regards to raw materials, is on the rebound, reports out of China indicate.
All indications are that the Canadian dollar will remain at near parity with the US dollar for the foreseeable future.
