Canadian Dollar at par with US dollar

[Pastiche]

Damn, I've got to get my ass down to Blaine to drop a guap on hennessy and hos.

[Azure]

Originally Posted by Lchoy

Not sure if it belong here but anyways:

They all say it, but I wonder how many of them would accept huge welfare and defense cuts.

Because that is the only way you could shrink the debt and deficit.

Pork is bad and all, and should be cut, but it will never account for enough savings to balance the budget.

[Fire]

I'm no wizard when it comes to this stuff, so correct me if I'm wrong:

Increase in Interest Rates means: Increase Canadian Dollar vs U.S. Dollar (assuming the U.S rates stay the same), Decrease in inflation, Exports/economy will suffer (because of CDN dollar).

Keep the Interest Rates the same: Inflation at risk to run rampant, Canadian dollar will be lower helping exports/economy.

Is Bank of Canada hoping that the U.S. increases their interest rates at around the same time? That way inflation is under control and the Canadian dollar will not get too high relative to the U.S dollar.

Also, any idea when the U.S. interest rates will rise?

[Sylvanfan]

Well the bank of Canada's primary objective is to keep inflation in Canada at a level of around 3%. Canada's economy does depend significantly on the what's going on in the U.S. but ultimately the Bank of Canada has no control over what happens down there. So if they're forecasting growth and the interest rates are too low than inflation will be higher even if the US isn't as bullish with their outlook.

Increasing rates doesn't neccessarily mean the Canadian dollar will increase in value vs. the U.S. dollar. Right now it does because the U.S. isn't increasing their rates so the demand for higher yielding Canadian bonds is forcing the dollar upwards vs the lower demand for US bonds. As for when the US will increase their interest rates, someone with a much better financial background than me would have to answer that. I think the BOC initially wanted to keep low rates until October of this year, I think the US will need to keep their rates where they are until that point at least.

[troutman]

Also rising vs. Euro:

[macker]

Originally Posted by troutman

Also rising vs. Euro:

And the Russians continue to go Loonie...
http://www.businessweek.com/news/201...s-belarus.html

[mykalberta]

I love how Russians complain about the Dollar.

Country whose currency is the ruble is complaining about the Dollar.

[getbak]

Originally Posted by troutman

Also rising vs. Euro

The Pound's the one that amazes me:



A trip to England might actually be affordable now.

[blankall]

What are people's thoughts on buying US real estate right now? Is this the time to buy? Many foreclosures on the market and a strong Canadian dollar seems like a killer combination.