Canadian-American dollar parity – more closer than we think? Well, the gap certainly seems to get smaller and smaller. Last week the Canadian dollar traded in Toronto at a new 30-year-high, at 97.04 cents USD. The last time the Canadian dollar traded so high against the US Dollar was mid-February 1977 – more than 30 years ago.
Part of the loonie’s growing strength recently is a result of strong demand for oil and metals amid strong global demand for those commodities. Another very important, and underrated factor, is the weakness of the U.S. dollar. The U.S. dollar has been very weak due the recent slowdown in the housing sector that has been spreading to other parts of the U.S. economy and worldwide.
For more information, see the effects of a high Canadian dollar.
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