The Canadian dollar

[*Heather*]

Very well said Sunbride! I was going to type something similar last night but I was too sleepy and you did a WAY better job than I would have anyway!

 

I'm crossing my fingers that things turn around for the dollar sooner than later!

[~Melissa~]

Yeah I knew it had something to do with Oil prices dropping but that was very well put and informative. Thanks!

 

I don't know what that banker was smoking, but I want some J/K

[KAMAY11]

Very well written Sunbride!!

I work in the oil industry (as do most Albertans! ), and while the price of oil is low right now, it will bounce back. I ditinctly remember 2+ years ago oil was at this price....then it sky rocketed thsi past summer and now it's gone down again. I don't personally think we are heading towards an economic crisis...it is shitty that our dollar is low right now but it will go back up!

Think positive!!!

[*Heather*]

I hope things keep going this way...

 

Oil prices send loonie rising in overseas trading

Updated Thu. Oct. 30 2008 7:49 AM ET

 

CTV.ca News Staff

 

The Canadian dollar continued to soar in overseas trading Thursday on the back of rising oil prices, gaining two cents after Wednesday's three-and-a half cent gain.

 

At 7:25 a.m. Eastern time, the loonie was trading at 83.60 U.S., nearly two cents higher than Wednesday's close of 81.63 cents U.S.

 

In early trading Thursday, the dollar was as high as 83.86.

 

"Part of the reason is that oil was up $4.77 yesterday, gold was up $13.50, and the Canadian dollar is of course tied into those resources," BNN's Michael Kane said Thursday on Canada AM.

 

The falling U.S. greenback is also making the loonie appear stronger, Kane said.

 

The U.S. Federal Reserve cut its key interest rate Wednesday by another half a percentage point and rate cuts have "a tendency to weaken the dollar," Kane said.

 

Investors may also be skittish about the greenback ahead of a second-quarter report on the U.S. gross domestic product that is to be released today.

 

The GDP is a primary indicator of economic growth or contraction, Kane said, and experts are divided on what the report will say.

 

Estimates range from growth of 1.2 per cent to contraction of 1.9 per cent, Kane said.

 

The loonie's jump Wednesday was its largest single-day gain, beating a record set in the early 1970s.

[*Lo*]

Ya I saw that rally and I was happy! Another 10 cents would make me happy since I just got back from Boston, and I am going the weekend after this one, and then to New York for thanksgiving, and then Boston again in Dec, and then Florida after christmas and then a cruise where everything is in USD. I am getting killed! Luckily I paid for the flights and the cruise awhile ago, but it is just all the extras! When it comes time to pay for my wedding, I am going to get quotes in Cdn!!

[~Kate~]

Yay!! I've been watching it all the time, even though I'm still 3 months away. I think if it goes over 90 cents, we'll buy all the USD we'll need for Mexico just in case.

[*Heather*]

Yeah I agree - as soon as it goes over 90 (fingers crossed), I'll buy a big chunk. C'mon dollar!!!

[BachataBride]

I think that's what we'll do too!! But I don't think that will happen before January 18th!!!

[~Kate~]

Yeah, it might not happen before Feb 1 when we leave....but here's hoping!!!!

[PaulSchrank]

I've been following the financial blogs and news sites. What I'm reading is that the dollar is heading for a fall and the Canadian dollar will rise. Canada not only has oil but minerals and precious metals. A currency that is backed by commodities is much stronger than currency backed by nothing but debt. I'm long the loonie.

 

The recent rise in the dollar is a by-product of the credit crisis. As the market drops, positions need to be unwound and settled in dollars. With so much volatility there is a huge increase in market activity and dollars need to be purchased to settle these positions. The U.S. government is pumping the system with dollars to accommodate this but increasing the money supply like this always results in a devaluation of the currency.