Canada Dollar Dominance Shows Break With U.S. Dollar

Posted on Wednesday, September 19 at 14:11 by N Say
``Canada is in a very strong position,'' said John Taylor, chairman of New York-based FX Concepts Inc., which manages $12.1 billion in currencies. ``Its economy has significantly diverged from the U.S., and it's got all those things the world needs. My longer-term bias is that the Canadian dollar would be stronger than the dollar.''

Canada's currency, nicknamed the loonie after the image of the national bird on the one-dollar coin, has risen about 4 percent against its U.S. counterpart since June 12 amid growing speculation that losses related to U.S. subprime mortgages would prompt the Federal Reserve to cut interest rates.

Of the 16 most traded currencies, none has done better than the loonie's 13.5 percent gain against the dollar this year. It reached a 30-year high of 97.66 U.S. cents today. The currency has rebounded from a low of 61.80 cents in January 2002.

Linkie

[Should we dump our dollar now and use an "Amero?" HELL NO! Not when we're breaking free from the US! & I'm sure it will only get better once those ships start arriving from China, & Ontario & Quebec firm up their plans to do more business with Europe. -- NSay]

Note: Linkie

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