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| Subject: Recent Exchange Rates |
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The turnaround of the CDN$/US$ exchange rate recently is a shock. Last time I looked, a U.S. dollar now gets you almost $1.30 CDN. The cause, as I´ve read, is that Canada´s dollar is strongly linked to commodities, which have taken a real tumble across the world in value. With a worldwide global recession in progress, raw materials are not as hotly in demand for sluggish global industries.
I´m wondering if this has affected anyone´s plans. Less travel to the U.S. or abroad for Canadians, or business as usual at an exchange rate historically more typical now? For us still down south, not only a bit of a relief from the past couple years, but an attractive time to move funds north.
Apparently the situation won´t improve (from CDN$ point of view) until commodity prices bottom out.
[25-10-2008,17:49]
[**.53.226.146]
Richard |
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(in reply to: Recent Exchange Rates)
for a while they were saying the CDN dollar was over valued. now they are saying it is undervalued. Price of oil right now is starting to affect Alberta. TarSands is expensive to extract. I think they need $100 a barrel to make money (don´t quote me on the threshold). good news for the manufacturing sector but the US economy is so bad at the moment it may not change much.
too much too fast. We are used to an .80-85 cent dollar but not when it happens this way.
my friends are not making quickie shopping trips to the US. My girlfriend is rethinking her trip to Mexico but I think that has more to do with the mutual fund statement that arrived yesterday... and that was only for the period ending September 15.
[25-10-2008,19:02]
[**.155.160.37]
Sharon |
(in reply to: Recent Exchange Rates)
Because we moved up here when the dollar was at par, we kept most of our money in the US. We expected a big drop at some point, since, as Sharon mentioned, the Canadian dollar was considered over valued at the time. Now, the only money we have here is tied up in our house, which will be a good investment regardless of what the market does (perhaps not for financial reasons, but at least for personal ones).
To be honest, we are keeping the option open of returning to the US, and we don´t have any plans to move more money up north. The market has no bearing on that decision, but you´re right Richard, it is an attractive time for American PRs to move their money now.
We are still planning an upcoming shopping trip to Maine, before winter sets in. Literally half of my husband´s office made the trip a couple weeks ago. It´s amazing how many people rely on traveling to the US for basic goods; it is nothing for people here to drive 3 hours to go to Target and to buy clothing. From what we understand, everyone who makes the trip south brings back their quota of alcohol as well; if they don´t have plans to consume it, it is assured that someone will be willing to buy it.
I don´t get the sense that the falling Canadian dollar will affect anyone´s US shopping trips from this part of the country, since the US provides not just (much) lower prices but also (much) more variety.
[26-10-2008,07:17]
[**.252.125.242]
wannabecanadian |
(in reply to: Recent Exchange Rates)
In your part of the world the lack of variety is so true.
What gets me is Canadian banks, Canadian resources etc. etc. say no one should be purchasing US Green Backs but......
Strange world we live in today.
Roy
www.cvimmigration.com
[26-10-2008,20:08]
[**.55.218.138]
Roy |
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