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Loonie surges against U.S. greenback

Canadian dollar hits three-and-a-half year high


 

The Canadian dollar soared to a three-and-a-half year high against the U.S. dollar on Wednesday, briefly reaching US$1.0529, a level not seen since November 2007. Market watchers say high commodity prices and above-forecast inflation figures in Canada are behind the loonie’s surge. A larger-than-expected rise in Canada’s consumer price data released on Tuesday prompted expectations that the Bank of Canada would hike-up interest rates in July. But the Canadian dollar was down against most other G10 currencies, leading one analyst to tell Reuters that the exchange rate move reflects an independently weaker U.S. greenback, rather than a strengthening Canadian dollar.

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Loonie surges against U.S. greenback

  1. Nothing to see here. Please continue your excessive consumption, Canadian consumers. Everything will turn out just fine.

  2. Nothing to see here. Please continue your excessive consumption, Canadian consumers. Everything will turn out just fine.

    • No excessive consumption for me. I have no debt, other than monthly rent, untilities, insurance. I learned (too late) that the country will not be spoon-feeding us in our old-age. I heard, on the radio, today that Canadians spend $4.00 out of every $100.00 on alcoholic beverages. Priorities?

      • That's a healthy start. Now start working on having enough cash to cover six months worth of expenses. It's the only way to really give yourself a buffer if you lose your job.

        But I sound hopelessly old-fashioned in saying that.

        • I completely agree with you. I started to save ten years ago, and now have a nest egg of over one year's salary.
          I said that I learned too late, because I'm retiring this year.

  3. The US economy is being run into the ground by socialists, of course every other currency will rise against the greenback, socialist leaders spread the poverty around.

  4. The US economy is being run into the ground by socialists, of course every other currency will rise against the greenback, socialist leaders spread the poverty around.

  5. Privatize the Profit, Socialize the Debt.

  6. Privatize the Profit, Socialize the Debt.

  7. The US economy has been run into the ground by pretty much every single party throughout the past 20 years. If you're referring to Obama, he simply took over the helm of the Titanic after it struck the iceberg.

  8. If you're driving a motorcycle and about to hit a deer, the best thing to do is speed up?

    Seriously, the entire edifice of their economy (and, indeed, the global economy) would come crashing down right now if they began restricting the amount of liquidity in the market. At least, that's their current belief.

    I think they're just kicking the can. And a mighty kick it's been.

  9. And then proceeded to tear an even bigger hole in the hull and take on water even faster.

    • Obama is in a no-win situation, and was when he took office. He's kicking the can as far as he possibly can in order to try and push back the day of reckoning to a point when he's left office, but I doubt he'll be successful. I can't really blame him for trying, because he's been completely boxed in from the beginning.

      Everyone seems to think the issue in the United States is an out-of-control budget, which is Obama's fault. That's nothing more than a side-show. The real problem–and one that the administration recognizes–is that the banks are still deeply in the red and are only surviving on a healthy does of free money in the form of zero percent interest rates. The entire economy would collapse the moment that they raise interest rates and cut back the flow of liquidity. Unfortunately, this liquidity–along with a significant dose of moral hazard–is starting to have negative repercussions on the general economy in the USA and, indeed, the world. And pretty soon the administration is going to have to make a choice between saving the banks (and markets) and saving the rest of the economy.

      Obama is really hoping that choice won't have to be made until he's well into retirement.

  10. USD plummeting is more like it.

    • Don't count out the greenback yet. There's still one really good bounce left in the old girl, and it's going to catch an awful lot of people off guard.

      • best change the oil in ye ole money printing machine

        • The best thing about virtual money is that it only takes a few CPU cycles and a wee bit of electricity to create billions of dollars a day. We can't even bank on the machines breaking down or running out of armoured trucks.

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