Loonie takes flight on world markets
Posted Dec 31, 2010 10:15 am.
This article is more than 5 years old.
The Canadian dollar was trading overseas Friday morning at par with the U.S. dollar.
Most economists say the Loonie will likely hang around par with the American Greenback for the foreseeable future.
Derek Holt with Scotia Capital says because of weakness in the U.S. economic recovery and strong demand for commodities, the Canadian dollar could soon be worth even more.
“We’ll see towards the end of the year more concern about the U.S. fiscal deficit position and Canada, relatively speaking, looks like the poster child of global fiscal strength, so that should help out our currency,” he says.
Holt says a strong Canadian dollar will hurt the manufacturing sector, but most other sectors of the economy will benefit.
