Monday, October 29, 2007

Canadian Dollar is at a 47-Year High


The Canadian dollar traded at a 47 1/2-year high Monday morning, hitting 104.54 cents US. Yes, it was 1960 when the dollar was this high relative to the U.S. dollar.

The loonie has risen more than 18 cents US this year, as several factors converged to drive it to parity with its U.S. counterpart and beyond – including record-high oil prices and a weak U.S. greenback.

All is not necessarily good for Canadians. Retail prices have not dropped much and there is not a significant differential across the border. Canadian consumers are cranky. Retails sales and exports and falling.

I just bought a pair of running shoes online from a U.S. retailer for $109.95 that sell for $199.95 in Canada.

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