The Triumph of the Loonie

Published: September 29, 2007, 6:30 pm

Tags: money finance, economy, canada

(Cross-posted from The Reaction.) The Canadian dollar briefly reached parity with the American dollar last week, before pulling back slightly. But yesterday — well, it felt awfully good: The Canadian dollar has closed above parity with U.S. dollar for first time since November, 1976, closing up two-thirds of a cent at $1.0052 (U.S.). The Canadian dollar vaulted back above parity early Friday and held on to its gains throughout the afternoon as commodity prices rallied and the U.S. currency continued to struggle. The Canadian currency reached parity with its U.S. counterpart for the first time in 31 years on Sept. 20. Since then, it has risen above par during intraday trading a number of times but has failed to close above that level. The generally weak American dollar has helped, of course, but another reason for the rise of the loonie (the nickname of our dollar) is oil: “‘Among the G-10 nation currencies, the Canadian dollar is used more than any other as a proxy

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