Canadian Dollar Parity With US Dollar Looms
Date: Saturday, February 11 2006
Topic: Canadian News
Thu Feb 9, 2006
By Jamie McGeever
NEW YORK (Reuters) - It might have been unthinkable only a few years ago, but parity between the U.S. and Canadian dollars some day is not that much of a long shot any more.
Even though the Canadian dollar has appreciated by almost 50 percent against the greenback over the last three years, analysts say buoyant global commodity prices, Canada's relatively favorable economic fundamentals and prospects of rising interest rates suggest there's room for even more upside.
Further gains of only around 15 percent from current levels would put the U.S. dollar at C$1.00 for the first time ever.
"We will get there," said David Durrant, chief strategist at Julius Baer Investment Management, LLC, in New York.
"We would think that's in the cards. Will it be in six, 12, 18 or 24 months? The timeframe's all that's missing ... (but) that's where we're going," he said.