Quote:
Originally Posted by Brookside
From what I understand, what we are really seeing isn't the strength of the Canadian dollar rising as the result of a great economy rather than the U.S. dollar falling against stronger worldwide currencies.
There's a couple guys on the site who know much more about this- it'd be nice to hear from them.
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Sorry. THE US dollar is tanking, yes, but the Canadian dollar is going the other way against 3rd currencies. Just in the last 180 days the CAD has risen against the Euro substantially - from 1.54 CAD per Euro to 1.41 per Euro; while the USD has gone the other way, from 1.33 to 1.42 per Euro. Two reasons primarily: the Canadian government is not running massive deficits a la USA, but large surpluses over each of the past several years; and a greater proportion of our economy is based on resource extraction, and some of these resources (especially oil and natural gas) are bringing in big $ these days... making Canada an attractive investment target, pushing up our dollar.