The Canadian dollar has been slowly gaining against the US dollar. For the first time ever, the C$ is now trading at parity with the US$. Why? The US has a large current account deficit, and has been accumulating foreign debt since the 1980s. This is not sustainable. The world will not lend to the US forever. So, the dollar must eventually depreciate in order to make US goods look more attractive, and make US investments look less attractive. This trend is likely to continue for some time until the US gets back on better financial ground.
Canadian dollar exchange rate?
It cost $1,02 in US dollars for $1,00 Canadian. It would be safer to convert now, since the Reserve chairman Ben Bernanke believe its a good option to %26quot;print%26quot; money to pay off the US debt, that will cause major sell outs of US dollars in the entire world and US money might be worth next to nothing in the future.
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