"We've got a red-hot economy, inflation is back on the front burner and the Bank of Canada may have to respond," said Patricia Croft, chief economist at Phillips Hager & North.
"Could we go to $1.05 US, $1.10 US, $1.20 US? Absolutely," she told CBC News. "Currencies in the short term are driven by momentum and sentiment and right now the momentum is creating that tailwind for the Canadian dollar."
So far this year, the loonie has appreciated by 18 per cent against the U.S. dollar. Since its low of 61.79 cents US in early 2002, it has risen by about 65 per cent.
http://www.cbc.ca/story/money/national/2007/10/05/looniejump.html
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