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Loonie closes 2010 above parity

Rising commodity prices boost Canadian dollar


 

The Canadian dollar closed out 2010 higher than the greenback, finishing the year at 100.54 cents U.S. The figure represents a 5.6 per cent gain over the past 12 months and is the loonie’s highest closing value since May 2008. The Canadian dollar’s rise was largely due to an increase in oil prices and a spike in the price of copper, while its U.S. counterpart fell on strong economic data that prompted investors to take on more risk.

CTV News


 
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Loonie closes 2010 above parity

  1. Wrong. Full stop. The loonie reached parity with the U.S. dollar because for the neocons and their greed and voodo economics have demolished the the largest economy the world had ever known. And they got stinking rich doing it. If millions of decent jobs dissapear as collateral damage…well, that's just the market at work. The United States is finished. It's empire will crumble so fast your head is gonna spin. I take zero joy in this as they will take us with them. Merry fricken Chistmas.

  2. Perfect! As we get richer and the Americans get poorer with a regressive Republican-led economic plan, we will very soon be able to "foreign invest" in their economy, buy them up and shrink their economy down and "drown it in a bathtub" as the conservative mantra goes. Don't worry about our exports, the Chinese gluttons will be buying our Canada Savings Bonds instead of the worthless American T-bonds. I know, I'm dreaming but what if Harper really knew something about macro-economics? He would know that the business cycle is no longer an inflatable life boat and we could stimulate this economy even more instead of always having the Queen crying in Ottawa's pocket.

  3. Our dollar rises as the US dollar sinks, it's nothing we are doing. And it's bad news for our dawdling exporters.

    • It isn't what we are doing, it's what we're not doing. Like China and Japan, we normally keep our currency artificially below the US dollar. However, we try to keep the Canadian dollar near par with the US dollar because Canada and the US share a common bortder and have similar standards of living. What's happening now is that the US is devaluating their dollar faster than we are devaluating the loonie because of trading in quantitative equities. They are hoping that China will increase the value of the Yuan while Japan increases the value of the Yen. But it doesn't look like it will happen any time soon.

      • No, we try to keep the dollar below par. We export more goods that way.

        The USD is going down, so we are going up in comparison.

        The Chinese Renminbi isn't going anywhere, just because the US wants it too

  4. The world changes. You either make yourself an island, get trapped in the currents or navigate through.
    If the dollar isn't the driver of exports then we had better be selling something that buyers want regardless or do a better job at being competitive.

  5. The CDN dollar was up again yesterday, the Australian dollar is also at all time highs vs the US dollar. The amazing thing is that most Americans are unaware of this and it's impact on their economy.

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