Wednesday saw the Canadian Loonie briefly reach the 99-cent US mark in the overseas trading markets – inching closer to parity with the US dollar.
The Loonie drifted down 0.14 cent to close at 98.5 cents US on Wednesday making the 99-cent rise short-lived. But SWEET none the less! The release of the Consumer Price Index (CPI) for Canada Wednesday morning slowed the dollar’s ascent, forcing the minor drop before close of market.
This is the first time in almost 30 years that the Canadian dollar has been on-par with the US dollar. That means the first time in MY LIFETIME that the Canadian dollar has been so strong.
This rise may be not be totally attributed to a strong Canadian economy, The U.S. currency also plummeted to a new low Thursday against the 13-nation Euro, which traded above $1.40 for the first time since it was introduced in 1999.This is a great time for Canadians to spend their money in the US, with internet shopping sites like Ebay very affordable on the very best deals around. There has also been a sharp increase in Canadian holidaymakers booking trips because of how much you can get with the Canadian dollar.
After reading several American based websites, there are a lot of Americans (espeically those so close to the border) who are disappointed their money will not get them the deals they are more accustomed to receiving driving north. This decline in the US greenback, will also affect the number of American holidaymakers. With their currency not providing them with the big-bang-for-the-buck, as well as concerns for value will drive people to stay home.
The biggest economic concern is in the manufacturing sector, which may see loss in jobs when companies will have to outsource to keep costs low and keep competitive in markets.
Canada (specifically Montreal) was again seeing a rise of Hollywood movies looking to shoot in the historic Quebec city, with the rise of the Canadian dollar many of these movies may look elsewhere to shoot to conserve their movie budgets.
Even with the scary economic concerns, I’m proud of the Loonie – the little dollar that could. . .