CDN dollar tops 94 cents

[DISH]

http://www.cbc.ca/money/story/2007/0...larparity.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.