Canadian loonie ain't so loony: It's almost at par with the tired greenback.....

[marmar]

from the CBC:


Loonie cracks 98 cents US
Last Updated: Tuesday, September 18, 2007 | 9:21 AM ET
CBC News


The Canadian loonie's strong flight continued Tuesday as it briefly cracked 98 cents US for the first time since Feb. 3, 1977.

After going through the 98-cent plateau, the loonie later retreated. In morning trading on global foreign exchange markets, the Canadian dollar was up 0.62 of a cent at 97.90 cents US.

The loonie has been getting support from an expected cut in the key U.S. interest rate Tuesday of at least a quarter of a percentage point, as the U.S. Federal Reserve responds to signs of slower growth and a deepening housing slump.

If the Fed cuts its overnight rate by half a percentage point — and the experts say that's a possibility — that would give an even bigger boost to the loonie.

The loonie is also seen as a "petro-dollar," meaning it is closely tied to the rise and fall of oil markets. After hitting a record high on Monday, the price of oil was trolling more new highs on Tuesday, topping $81 US a barrel at one point.

The rising strength of the Canadian dollar is making life even more difficult for Canadian companies that export to the U.S. That includes many manufacturing companies and forestry companies. .....(more)

The complete piece is at: http://www.cbc.ca/money/story/2007/09/18/dollarise.html

[entanglement]

1. They expect it to attain parity with the $ next year

http://www.bloomberg.com/apps/news?pid=20601082&sid=aVgb1aMzQSQY&refer=canada

[High Plains]

2. The falling US dollar helped drive me out of Canada...

I spent about five years there, and the dollar dropped the whole damned time. I was getting paid in US dollars, so my real income slowly deteriorated. Now, I'm back in the land of the crappy dollar.