The talk surrounding the CAD reaching parity versus the USD is beggining to gather steam even as the Bank of Canada has warned that it might hamper Canada’s recovery. Canada’s economy depends on its exports primarly to the US, and a rising currency would shrink the gap between exports and imports as is the case currently in Germany.
The Canadian dollar powered to its highest level in more than a year Friday, hitting 95.93 cents (U.S.) in morning trading – and rekindling speculation on when it might reach parity with the U.S. dollar.
The loonie jumped almost a cent on news that the Canadian economy created 31,000 new jobs in September, lowering the unemployment rate to 8.3 per cent from 8.4 per cent. It wavered only slightly a few hours later when Statistics Canada reported that Canada’s trade deficit increased to a record $2-billion in September.
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Alfonso Esparza