CDN dollar tops 94 cents

[DISH]

http://www.cbc.ca/money/story/2007/06/01/dollarparity.html


daaaaamn... USA here I come

[Kommander_KornFlakes]

I hope the loonie keeps going up and up till it hits "par". I take MANY vacations south of the boder so I'm ecstatic.

[GangStarr]

Makes my trip in Europe more affordable. Im withdrawing all my Cdn funds to my Euro bank account now!

[ronny1980]

Makes my trip in Europe more affordable. Im withdrawing all my Cdn funds to my Euro bank account now!

lol. When you going? Im leaving for my euro trip on wednesday!

Going to do my foreign exchange tomorrow after work or tomorrow morning!

[The_Madz]

funny how everyone is always happy with the loonie being up..


well .. except if you are in manufacturing and otherwise sell to US customers who now find you too expensive and go other places.

Canadian export will drop the higher the loonie goes.

[Bazooka Joe]

funny how everyone is always happy with the loonie being up..


well .. except if you are in manufacturing and otherwise sell to US customers who now find you too expensive and go other places.

Canadian export will drop the higher the loonie goes.

Which is why they'll likely bump the interest rate up in the near future.

[The_Madz]

Which is why they'll likely bump the interest rate up in the near future.

which will send the loonie even higher, it's based on those rumours that the loonie has been going up.

[Bazooka Joe]

which will send the loonie even higher, it's based on those rumours that the loonie has been going up.

Maybe my understanding of economics is off then... doesn't bumping the interest rate cool off the economy. And doesn't a slower economy mean a weaker dollar?

Edit, I should probably be a little clearer... my understanding is that a raise in interest rate will negatively impact the stock index, due to the higher cost of borrowing that companies require. This downturn would then influence people to liquidize Canadian stocks and increase foreign investment.

I'm not saying it's right, that's just the way I thought it worked...

[Bullseye]

Canadian export will drop the higher the loonie goes.

I don't think it will that make much difference, really, at least not in the short term. 80% of our exports go to the U.S., and much of that is commodities like oil that are prices in U.S. dollars. Automobiles is another big one, but car makers are not going to suddenly pull up roots and close expensive factories because of this.

The dollar may be the tipping point for some companies, but the real culprit to manufacturing leaving Canada is low productivity and global realities.

[Spidey]

Damn, I just converted my fnds for my us trip in July. It was still pretty high, over 92 cents I think.

Way better than the early 90's. It was just over 70 cents. Conversion back then always hurt.

[Bullseye]

Maybe my understanding of economics is off then... doesn't bumping the interest rate cool off the economy. And doesn't a slower economy mean a weaker dollar?

Yes, but that is offset by the higher rates attracting more foreign investment, which requires purchasing Canadian dollars, which drives the price up.

[Bazooka Joe]

I don't think it will that make much difference, really, at least not in the short term. 80% of our exports go to the U.S., and much of that is commodities like oil that are prices in U.S. dollars. Automobiles is another big one, but car makers are not going to suddenly pull up roots and close expensive factories because of this.

The dollar may be the tipping point for some companies, but the real culprit to manufacturing leaving Canada is low productivity and global realities.

However, if you pay your labour force in Canadian dollars, and sell your product in American dollars, then your profits will decrease as a result of a higher Canadian dollar.

[infinite.chaoz]

Alot of people will be out of work soon in Canada. Kinda blows.

[gei]

I don't think it will that make much difference, really, at least not in the short term. 80% of our exports go to the U.S., and much of that is commodities like oil that are prices in U.S. dollars. Automobiles is another big one, but car makers are not going to suddenly pull up roots and close expensive factories because of this.

The dollar may be the tipping point for some companies, but the real culprit to manufacturing leaving Canada is low productivity and global realities.

Considering we've recently lost over 250,000 manufacturing jobs, I'd have to disagree with you.

But interest rate hikes are almost certainly on the way, and the dollar will continue to rise.

[The_Madz]

I don't think it will that make much difference, really, at least not in the short term. 80% of our exports go to the U.S., and much of that is commodities like oil that are prices in U.S. dollars. Automobiles is another big one, but car makers are not going to suddenly pull up roots and close expensive factories because of this.

The dollar may be the tipping point for some companies, but the real culprit to manufacturing leaving Canada is low productivity and global realities.

actually that is the problem. In the world markets most customers prefer pricse in US dollars. As we all know, it's extremely hard to suddenly increase your prices even if it's justified because the loonie is so much stronger.

what it means is that companies receive less revenue from sales to the US or loose out contracts because they have to raise their prices.

there are tons of smaller manufactures not just "big ones" like oil and cars.

although there are other reasons for manufacturing jobs going away, this is certainly not helping.

[Bullseye]

Of course the high dollar is hurting exporters here, I'm not denying that. My point was that it won't significantly decrease exports in the short term. For example, oil and natural gas are now major exports for Canada, and the U.S. is not about to stop buying these.

The dollar is not what is driving manufacturers out of business, though, it is just an added pressure. The major causes are low productivity here, and cheap labour in other countries.

[Mulder and Scully]

I don't think it will that make much difference, really, at least not in the short term.

It's not just manufacturing exports but also wholesaler and retailer sales to the U.S. Americans buy from Canada because the exchange rate used to be in their favour and they'd save enough to make it worthwhile, but not anymore.

[infinite.chaoz]

It's not just manufacturing exports but also wholesaler and retailer sales to the U.S. Americans buy from Canada because the exchange rate used to be in their favour and they'd save enough to make it worthwhile, but not anymore.

Don't forget tourism in Canada.

[atforum]

The govt. will irrespective earn. Imagine us all buying stuff from US, the govt will still get the tax. :)

[Shaf]

time to order my camera lenses from the US... will it get ever better next week??

[Talamasca]

My parents want to buy some U.S. currency now that it's so cheap. Is now a good time or should they wait?

[ghostryder]

funny how everyone is always happy with the loonie being up..

well .. except if you are in manufacturing and otherwise sell to US customers who now find you too expensive and go other places.

Canadian export will drop the higher the loonie goes.

It also allows manufacturers to upgrade equipment (which is usually made and/or sold in USD) to boost productivity.

It wasn't that many years ago that there were frequent news reports about how Canadian manufacturers couldn't afford to upgrade because of the low loonie.

[nano]

My parents want to buy some U.S. currency now that it's so cheap. Is now a good time or should they wait?

with hurricane season starting today it would be wise to wait im sure the Canadian dollar will get higher

[Sprite_TM]

this is good for the short term ie. going on vacation but long term, this is going to hurt more than that amount u saved during vacation

[helium]

Oooh, time to convert my PayPal money!

[Bullseye]

It wasn't that many years ago that there were frequent news reports about how Canadian manufacturers couldn't afford to upgrade because of the low loonie.

Five years, to be exact, that was when the dollar was at its all time low of $.61. I was surprised when I saw how recently that was, that is a huge percentage jump in value for a short period.

[Txiasaeia]

time to order my camera lenses from the US... will it get ever better next week??

The amount it's going to change by next week is negligible. Get the camera soon. I'm personally choked as I've got some Korean won I'll be exchanging for Canadian dollars on Monday, and because of the high exchange rate (versus one or two months ago) I'll be losing about $300. This makes me choked.

[manixc]

Five years, to be exact, that was when the dollar was at its all time low of $.61. I was surprised when I saw how recently that was, that is a huge percentage jump in value for a short period.

well, you can thank the iraq war for that.

[Nikita]

Changed $1000 US to CDN yesterday and got $42.40 for it. I think it was either 3 or maybe 4 months ago that I got $140 for $1000. Man, it went down fast!

[hagbard]

Get ready for economic collapse if it goes over the US dollar. Gold and bullets.

[Bullseye]

Get ready for economic collapse if it goes over the US dollar. Gold and bullets.

:rolleyes:

[PMech]

Maybe my understanding of economics is off then... doesn't bumping the interest rate cool off the economy. And doesn't a slower economy mean a weaker dollar?

Edit, I should probably be a little clearer... my understanding is that a raise in interest rate will negatively impact the stock index, due to the higher cost of borrowing that companies require. This downturn would then influence people to liquidize Canadian stocks and increase foreign investment.

I'm not saying it's right, that's just the way I thought it worked...

Raising interest rates in the short run leads to long term saving and overall GDP gain in the future (money is more expensive, so we start to save for the future), leads to as you put it, less holding of canadian capital, and more foreign investing (where its cheaper). It'll lead to a minute inflation in the future, but as unforseeable as it is, I'd say it's natural.

[Stunt_101]

http://www.cbc.ca/money/story/2007/06/01/dollarparity.html


daaaaamn... USA here I come

hahahahah going to buffalo tmr, YEA BABY

[bubble.tea]

.......It was just over 70 cents. Conversion back then always hurt.

Except if you were going from USD to CAD :lol:.

[gei]

Get ready for economic collapse if it goes over the US dollar. Gold and bullets.

lol.... good old hagbard. always calling for doom.

to be honest i'm not sure anymore if your posts are serious or are supposed to be satire.

[hagbard]

lol.... good old hagbard. always calling for doom.

to be honest i'm not sure anymore if your posts are serious or are supposed to be satire.

Guess you'll know when the CDN dollar goes about the US dollar. :-0

[Tijuana]

put it back to 60 cents and hello jobs

[whampoa]

I still remembered the day when USD = GOLD. I guess not anymore.

Still got stash of it somewhere, got to find it first.

Anyways, good if you want to spend it South, bad if you want to convert to CND dollars.

[BadDrafter]

lol.... good old hagbard. always calling for doom.

to be honest i'm not sure anymore if your posts are serious or are supposed to be satire.

US social security is a ponzi scheme that will run out of money as is the corporate welfare project that is the Military Industrial complex. It cannot sustain it's self.

http://money.cnn.com/2005/03/23/retirement/2005_trusteesreport/index.htm

They also now estimate that by 2017 the system will not be taking in enough in payroll taxes to pay all benefits promised and will need to tap the special-issue bonds that make up its trust fund. That date was moved up from 2018.

Not that it would lead to an economic collapse, but in 10 years if the current spending continues (and increases as boomers get older) they will be bleeding money in the same fashion as the Ford Motor Company.

This has nothing to do with the Canadian dollar IMO.

As a collector of Canadian coins and ebay bidder I find this news to be great for the hobby of numismatics. Most sellers of Canadian coinage list from down south (they don't belong down there) and this will help me out alot.

[MrDisco]

As a collector of Canadian coins and ebay bidder I find this news to be great for the hobby of numismatics. Most sellers of Canadian coinage list from down south (they don't belong down there) and this will help me out alot.

ooh a fellow numismatist. any particular focus or do you just collect all cdn coins?

[BadDrafter]

ooh a fellow numismatist. any particular focus or do you just collect all cdn coins?

For now I am collecting ultra heavy cameo coins from proof like sets (1954-1980) PL65 only. I like coins that look like proof coins but aren't. Canada didd'nt start making proof coins until 1981. I hope to make year sets of all those years though the coin dealer told me what I was doing was borderline impossible. It could end up costing me tens of thousands of dollars but I just don't care.

like so

http://www.ahcollect.com/060806/ACG334978.jpg

or

http://www.ahcollect.com/030506/PCGS21841664.jpg

Those arent mine and I don't have any that good just yet. Those are just examples of what I'm after.

Of course when I get out of university my first gift to myself will be a 1948 Candian silver dollar in MS 65 condition. Yes, I know how much they cost but I want one.

http://www.canadiancoin.com/ is a website I frequent alot. especially the forums.

[Kommander_KornFlakes]

However, if you pay your labour force in Canadian dollars, and sell your product in American dollars, then your profits will decrease as a result of a higher Canadian dollar.

Do you really think I give a care if factory owners get less profits? Hahahahaha!!! As long as I'm personally blessed with the soaring loonie I will not lose sleep over some millionaire not making huge profits.

[atforum]

I guess this is the best time for manufacturing companies to get some cheap upgrades of their machines :lol: