PunBB

Why does this feel like an accomplishment instead of an embarassment? :lol:

TORONTO - The Canadian dollar broke through the 80-cent US level on Friday for the first time in more than 11 years, fuelled by solid job creation numbers in Canada and weaker numbers in the United States.

The dollar touched 80.01 cents US around 11 a.m. EDT before slipping back to 79.96 cents US in late morning currency trading, up 0.68 cents.

The last time the dollar traded at the 80-cent US level was on March 30, 1993. Its last close above 80 cents US was the day before, when it finished at 80.18 cents US.

Friday's big lift for the Canadian dollar came after economic data showed Canadian job creation in September came in better than expected while U.S. job creation figures failed to meet economists' expectations.

The loonie has risen steadily in recent months as commodity prices increased – especially oil. Currency traders note that, as a net exporter of oil, Canada is a net gainer from rising prices.

The Canadian dollar has also been goosed higher by recent comments from Bank of Canada governor David Dodge, who warned on Sept. 20 that interest rate hikes are on the way.

The loonie has risen almost 3 cents against the U.S. greenback since Dodge made those comments.

Canadian dollar has risen 29 per cent since early 2002

Taking the longer view, the Canadian dollar has been on a steady rise since its low of 62 cents US in January 2002. At that time, it cost $1.61 Canadian to buy a U.S. dollar. Today, it costs $1.25.

If Canadian interest rates rise faster than U.S. rates, that makes our dollar more attractive to foreign investors and boosts its value.

Phillips, Hager & North economist Patricia Croft said many Canadians consider a higher loonie a feel-good story because of the perceived link between a higher Canadian dollar with a strong economy.

"When you open up your newspaper or turn on your TV and see the dollar through 80 cents, people think, 'Wow an 11-year high on the Canadian dollar, that's great' because there is this emotional tie between the value of a currency and how well the country is doing," she told CBC Newsworld.

Many bank economists expect the Canadian dollar to continue rising in the next year or two to anywhere from 81 to 83 cents US. The National Bank forecasts an 85-cent US loonie by the end of 2006.

I found it kinda funny that a professional bank economist would project the dollar will continue to rise "in the next year or two". Wow, what a limb to go out on. 8)

And I "predict" the Presidential election will be won by...a tall, thin, rich white male.

Good for travelling to the US I suppose, but it's making my life a bitch on the export side of our business.

It's great for me. I'm still getting paid in Canadian funds but live in the US now. I always hate exchanging my money.

If we're not careful, they'll become too valuable to bury at centre ice! :lol: :thumb:

If it goes any higher, we'll be out there with ice-picks hacking up every rink in the country! It'll be another gold rush!

Remember that the dollar was devalued by the government for the greater good, and if they felt so compelled, David Dodge and Paul Martin could raise it to $1 US again.

We let it float against world markets because it's simply good economic sense.

When you have an export oriented economy and the wealthiest market in the history of the world to the south (Which also happens to be 10 times larger than our own economy) it makes great sense to devalue your currency.

Don't believe the economic nay-sayers. Our outlook, CPP forcast and growth rates are all fantastic. This country has never been in better comparable economic shape.

Now if only we had hockey, this would be paradise...