Parity was here for a good time, not a long time - Macleans.ca
 

Parity was here for a good time, not a long time

Canadian dollar falls for third day in a row


 

The value of the Canadian dollar has fallen for a third day in a row after reaching parity with the U.S dollar last week. Mid-morning Monday, the loonie was trading at 98.47 cents U.S. Experts blame the U.S. Securities and Exchange Commission’s investigation into fraud at Goldman Sachs Group for the drop. “The market seems to be running to the safety of the U.S. dollar today,” wrote Scotia Capital currency strategist Camilla Sutton. “The impact of the SEC’s charge against Goldman Sachs has been sharp.” The fall is also linked to China’s recent efforts to cool its real-estate market, which has lowered the price of raw materials and hurt commodity-linked currencies. Said Marc Chandler, global head of currency strategy at Brown Brothers Harriman & Co: “The China story and weak commodities are weighing on the Canadian dollar.” The Bank of Canada is expected to discuss interest rates at a meeting tomorrow.

BusinessWeek

Vancouver Sun


 
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Parity was here for a good time, not a long time

  1. Everyone should read over the above and see if it makes sense to them: investors scared of destabilization caused by the US Wall Street Goldman Sachs fiasco, in the US, are running to the “security” of the US dollar!

    There is a time coming when people will stop believing the “safe” part in “the safe American dollar” and something like this no longer has to make sense. It's probably sooner than later.

    • You had the same reaction I did. Safety of the US dollar? Hello?

      • Familiarity of the US dollar?

  2. Not to worry, in a year, oil at $81 a barrel will look cheap and the Canadian dollar will be back over par. To the best of my knowledge, "they aren't making any more of it".

    As an aside, it's always scary when you start comparing your own fiat currency to another fiat currency – both are just paper after all.

    http://viableopposition.blogspot.com/

  3. now this is old news because it is over a dollar again