And I for one welcome our new Tuke Hat wearing overlords...
Posted on 07/25/2007 5:51:26 AM PDT by SubGeniusX
TORONTO (CP) - For the first time in more than 30 years, the dollar has closed above 96 cents US.
And it's still heading higher. The loonie soared more than eight-10ths of a cent to end the day at 96.36 cents US. Right now, the dollar is trading overseas at $96.58. Traders point to signs that Canadian retail sales roared ahead in May.
That's fuelling speculation the Bank of Canada will raise its trend-setting overnight rate on September 5 to try to put some downward pressure on inflation.
Two weeks ago, the central bank rate increased from 4.25 per cent to 4.50 per cent.
Traders also say the American dollar is losing strength, making the loonie, the euro and some other currencies appear stronger.
When this year started, it took $1.17 to buy one American dollar.
It now takes about $1.04.
Well, we've come a long way on that count. The good news is that Canada and Mexico have surpassed Saudi Arabia as the largest foreign suppliers of oil to the U.S. The bad news is that Canadian oil is much more expensive than oil from the Middle East in most cases. This steep decline in the U.S. dollar against the Canadian dollar reflects that brutal reality.
Fortunately for me, I do business on both sides of the border.
yes alot of the Canadian oil is "Sand Oil" coming from Alberta... HUGE reserve but much more difficult to extract and refine...
being from Buffalo I am always crossing the border ... but ists getting to be a Pain in the Azz and will only get worse once the new "Passport/ID" regulations go into effect ... will stifle alot of cross border recreational traffic from both sides
You’re telling me. I live in Windsor and I crossed the border every day last summer working in Auburn Hills (outside of Detroit). The first two months were great, then it became hellish all of a sudden. Like 25 minute waits BEFORE paying my toll to go across, then another 25 minutes BEFORE going through customs, and I had a work visa...I can only imagine those that didn’t.
Don’t get in a sweat over this. Their dollar ain’t rising, ours is sinking and will rebound. They ain’t got the economic or political stuff to raise their dollar. THey are already whining because their dollar is up and the Americans aren’t coming in with the tourist money like they did other summers. And, from what I hear, the retailers are not rollin back their prices to go along with this “rise” in their dollar either - on the goods which they import from the US. Still gouging away.
This is good news for our tourist biz. When the Canadian dollar went to 60 cents it was hard on snowbirds.
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