Rising Loonie... near Par again.

By The Canadian Press

The U.S. dollar has been driven downward in recent weeks by rising oil prices and continued economic instability.TORONTO - The Canadian dollar is flirting with parity with the U.S. dollar, a level it has not hit since July 2008.

 

 

The loonie, on the other hand, has been supported by the relative strength of the Canadian economy and confidence that Canada has not taken on more debt than it can handle, worries that persist for the United States and many European nations.

 

At mid-morning, the currency was up 0.46 of a cent to 99.63 cents US. Last week it rose 1.75 cents US on strong economic data and surging commodity prices.

 

Economists don't expect the loonie to rise quickly to the heights it reached around US$1.10 back in November 2007, but rather feel it will waver around parity for a while.

 

A high loonie is a boon to cross-border shoppers but a curse for many manufacturers and exporters as the price for their goods becomes less attractive to international buyers, especially in the U.S., Canada's biggest market.

Jas's Note:  This isn't good news for our manufacturers and tourism industry who depend on a low dollar to sell exports and be affordable to tourists.  How will this play out for the Housing market?  As long as we don't see significant job losses... we'll be just fine.  After all you can't get a mortgage unless your employed.  Keep an eye out on employment figures in the next few months.

 

Jas Jagpal, Remax Dynasty Realty, jasjagpal@rogers.com  647-272-6629

 

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