Canadian Dollar Hits 1.0617, A 130 Year High
On October 31, 2007, the Canadian dollar closed at its highest point in 130 years - at $1.0617 to a U.S. dollar. The increase is, in part, the result of the U.S. Federal Reserve rate cut. Canadians are not talking about the exchane rate of the slightly fluctuating Chinese Yuan (RMB), but rather the depreciating value of the currency of our southern neighbour. Can the Canadian dollar go much higher?
The strong Canadian dollar (or weak U.S dollar depending on your point of view) is creating problems for Canadian export-oriented businesses because Canadian goods are appearing to be more expensive. Canadian retailers are watching the Canadian consumers driving to the United States to purchase consumer goods (even with the high gasoline prices, the values are too good to pass on).
The question is what are the opportunities for businesses to benefit from the strong Canadian economy. Canada is a great place to invest if one wants to access to the entire North American market.
