Yahoo!: Loonie sinks, world stock markets lose ground
The Canadian dollar retreated sharply in foreign currency trading Monday while global stock markets continued the hemorrhaging that started Friday.
The loonie, which closed Friday at $1.0355 US, dropped more than 1.5 cents to open at $1.0204 US on Monday.
Over the weekend, Bank of Canada governor David Dodge told a group of bankers at an International Monetary Fund meeting that the loonie's recent rise was "abnormally quick and doesn't seem to be related to the domestic factors, which would normally lead to that sort of appreciation."
The U.S. dollar was also staging a bit of a rebound after hitting a fresh record low against the euro.
All I have to say about this is that even a slide to 97-cents US would have a positive impact on both the macro (Canadian Economy) and the micro (individual currency plays). Bring it on.
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2 comments:
But, but... I haven't bought my media racks from Per Madsen yet. Can't thinks stay loopy for just a bit longer?
Please?!?
The Canadian economy is being radically helped by the high dollar. It's forcing out weak retailers, weak manufacturers, and making firms focus on productivity rather than on currency arbitrage. It's also really helping cut down on inflation by hampering the ability of cost-push inflation in construction and oil-field services and cutting consumer prices.
Lee, you're talking like a really bad retailer who deserves to go out of business rather than as someone who understands economics.
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