Just Aboot Equal To The U.S. Dollar

Posted by Keith Hahn, Sep 14, 2007, 2:58pm

The Canadian dollar (loonie) rose to a 30-year high yesterday, closing at 96.83 cents to the U.S. dollar. Today, the loonie lost a little of its luster, down slightly at 96.66 cents.

The last time the loonie was riding this high was in February 1977, or the last time moving to Canada seemed like such a positive life-choice.

Loonie rides to new 30-year high [Canoe Money via Fark]

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Posted in: Blame Canada

Comments

Posted by Lee D, Sep 14, 2007 3:08PM

If I had a loonie for every headline this year that said "Loonie surges to 30 year high" I would have, um, $42.

Great news for importers, but I and other exporters are pissed at you guys. Selling in US$ used to always have a tidy little bonus attached to each transaction. Would you mind getting your act back together again, please.

Posted by Art Van der Lay, Sep 14, 2007 3:43PM

Try importing really long matches. It's a good business.

Posted by , Sep 14, 2007 4:19PM

it's great ... i get an extra jump up on my tsx holdings! Go international diversification :)

Posted by , Sep 14, 2007 4:25PM

Anonymous, I would hedge my CAD/USD risk if I were you. The rate might come a little close to parity but there is very little upside. On the other hand there is no way that the rate will break through parity (i.e. no way that 1 USD will buy less than 1 CAD). So there is a lot of downside risk there. So, short the loonie through an ETF or borrow Canadian dollars against your TSX position.

Posted by , Sep 14, 2007 4:26PM

Might come a littler CLOSER to parity, I mean.

Posted by CDN, Sep 14, 2007 4:53PM

Just cause we freeze our asses off for part of the year doesn't mean Canada isn't a great place to be.

Posted by , Sep 14, 2007 5:09PM

Bastards

Posted by Bulging Bracket, Sep 14, 2007 6:08PM

"There is no way that the rate will break through parity"

"640K is more RAM than anyone will ever need" *

"The Titanic is unsinkable"

"The Maginot Line is unbreakable"

Short to medium term, it looks like the US$ will demonstrate continued weakness while the C$ will continue to strengthen. More than that, who knows. It was earlier this week taht headlines were saying $80 was an impenetrable barrier. Hmm...

*yes the BillG quote is apocryphal, but it's just too good to not include

Posted by New World Order, Sep 14, 2007 9:18PM

Is this all being set up for the AMERO? Its the North American EURO?? There was a secret meeting in Quebec last month with Mexico, Can and US? Set up? You make you guess...

http://en.wikipedia.org/wiki/American_currency_union

Posted by smartass, Sep 14, 2007 10:49PM

Because I know everyone cares, the loonie didn't exist in 1977. Those lovely coins were first issued in 1987.

Posted by Calgary Schmooze, Sep 14, 2007 11:03PM

Yes - prior to 87, the currency was known as "Mini-bucks" or "Dollarettes".

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