Blame Slower Demand From US, Not High Dollar

"There is market weakness in the auto sector," he said, "and the government can't correct that." The Canadian dollar hit a record high of $1.0721 against the greenback on Friday. It has been propped up by high oil prices, as well as by a shaky U.S. economy. Meanwhile, Canada's jobless rate dropped to 5.8% in October -- the lowest point in 33 years. About 63,000 jobs were created last month, according to Statistics Canada. Despite these glowing numbers, certain industries have been pinched by the soaring dollar. The Forest Products Association of Canada yesterday said 32,000 jobs in the forestry sector have been lost since 2002. There have been about 6,500 job losses so far this year, FPAC said as it urged the government and the Bank of Canada to reign in the soaring Canadian currency. "Around the world, policy-makers seem to understand that centrality of exchange rates to economic and competitive strength -- except, until recently at least, in Canada," said Avrim Lazar, chief executive of FPAC, in a statement. ... http://www.canada.com/nationalpost/financialpost/story.html?id=cb175a06-8c48-4b44-a019-cdca758595d0&k=71792

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