Loonie Hits 30 Year Record High - $0.92 US
May 25th, 2007
The Canadian dollar hit another record high today. It now sits at above $0.92 US, a level it hasn’t touched since 1977. So far this year the loonie has risen more than 8% against the faltering US dollar. At the same time the Canadian dollar is rising, so is inflation.
Will David Dodge raise interest rates or sit on the sidelines for a bit longer? The interest rate currently sits at 4.25%. The problem right now is that inflation in Canada is higher than expected. Raising interest rates will keep a lid on inflation but will hurt Canadian exporters by further raising the Canadian dollar against the US dollar.
All eyes are on David Dodge ahead of the next meeting on Tuesday. Interest rates are expected to remain unchanged.
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2 Comments Add your own
1. TSX-Venture Investing &ra&hellip | June 7th, 2007 at 12:19 pm
[…] far the US dollar has depreciated in value significantly when compared to other currencies. It has dropped 8% against the Canadian dollar. If the US government continues to spend as much money as it is, this trend will only worsen. […]
2. TSX Investing » CDN&hellip | June 13th, 2007 at 2:11 pm
[…] creeping up past the 2% target the Bank of Canada has set. The Canadian dollar has risen more than 8% this year so far against the U.S. dollar. Under normal circumstances, a rising dollar would cool any […]
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