US News
Oh, Canada! Loonie tops the Greenback
By Karyn Chenoweth Sep 30, 2007, 6:32 GMT
Zimbabwe dollars- probably on the rise too EPA/BISHOP ASARE
The Canadian dollar, aka the Loonie, closed above parity Friday for the first time in almost 31 years, as the U.S. "greenback" continued its dramatic fall against major world currencies.
Bloomberg reported that the Canadian dollar rose 6.2 per cent against the greenback in September — its biggest monthly rise since the financial data provider began tracking the data in early 1971.
According to Bank of Canada data, the loonie closed at $1.0052 US, up two-thirds of a cent from Thursday's close.
The U.S. dollar is now worth a little less than 99.5 cents in Canadian money.
The loonie had reached parity with the U.S. currency on Sept. 20 — the first time since November 1976.
Gold futures jumped more than $10 US an ounce to above $750 US an ounce, a new 27-year high.
Gold's rise was due in large part to the weakness of the U.S. greenback, as investors jumped into bullion as an alternative to assets denominated in U.S. dollars.
In Friday trading, the greenback fell to another record low against the euro for the seventh consecutive day. Traders are expecting the U.S. Federal Reserve will cut lending rates further to help ward off a recession.
That expectation got a boost from the release Friday of core inflation figures that showed inflation running at its lowest level in almost four years.
According to the CBC, the loonie has gained 17 per cent against the U.S. dollar — more than any other major currency. The euro has risen seven per cent against the greenback year-to-date, while the British pound and Japanese yen are both up about three per cent.
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Older Talkback
page: 1
for not calling him 'president bush'.
...that this did not happen until the democrats took control of the Congress.
Now, the investment community is skitish about what antigrowth legislation is coming from the democrats.
Not Good.
Befer they came in, we had record employment, low inflation, record tax receipts.
Now, who knows?
crybaby, an ignorant crybaby.
SP4, you are an idiot. This kind of decline cannot happen in less than a year.
You and your boys have been selling off this country to China for years to finance your illegal war??? I know you like to say things that evey you are not stupid enough to believe---but then again you are a neo-con, maybe you are that stupid.
Lets see some of those 'facts' that you like to pretend are the truth, that shows this congress has spend us into this probelm, then 'get back to us' with thaty.
The Canadian dollar [CAD] didn't actually 'close' above the US dollar [USD]. It rose in trade above the USD at one point during the day and then closed out very, very slightly under the USD at 0.99747. So close you might as well call it equal. This realy shouldn't come as a surprise. Canadian and also many US investment managers have been predicting this would happen from at least 10 years back.
Another factor being largely ignored in the news is that the Toronto Stock Exchange has been red hot this year. The TSX is boldly going where no Canadian stcok exchange has ever gone before. Even with the recent downward correction, the TSX bottomed out at a level higher than it has seen in previous years, and is now climbing back up again. Natural resources are a hot commodity right now, and Canada is rich in natural resources. I'm actually expecting to see the CAD go even higher.
A falling USD may look bad on the surface, but it may actually be good in the long run for our trade deficit. And it may make for an opportune time to invest in teh US market. The usual gloom&doom crowd will always be claiming disaster, market crash, and recession are just around the next bend. But the Dow Jones-I is stll on a pretty solid footing, and incidetally still at a very high level compared to its past.
I can't comment on the euro or the pound, but as for the Japanese yen, the USD may onlybe worth 111 yen right now,but it was only worth 104 yen in 2000, and was all the way down to 70 yen in 1995. Articles like this one above fail to keep things in perspective.
'What a crybaby, an ignorant crybaby.'
Crybaby or otherwise, he speaks the truth.
page: 1
thank youSep 30th, 2007 - 12:54:47
thank you mr. bush for breaking the country.
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