Loonie trades above US$1.10 amid fears and calls for a pull-back
The loonie continues to climb and is now at levels not seen in over 100 years, but still, Canadians pay more for goods and services than our American neighbors. Clearly the most noticeable items are books, magazines and greeting cards since they have separate prices listed for Canadian and American purchasers but one doesn't have to dig too deep to see impacts in other areas. A <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Newfoundland couple is suing American car makers over their refusal to sell them a new vehicle in Maine, potato farmers in PEI are seeing impacts on their US markets and manufacturers in Canada are squirming. Where will it go from here? Consumers love the high dollar... but does the buying power come at the expense of our greater economy?
The loonie broke through yet another psychological barrier on Wednesday.
The Canadian dollar has breached the US$1.10 mark in after-hours trading, hitting 110.02 cents US. The loonie's rise is raising alarms that the rapid acceleration is both unsustainable and damaging to the economy.