The Canadian dollar has been increasing in value since 2003. On September 19, 2007 it reached US$0.9918. Will it overtake the American dollar? Why or why not?
by 
inconsequential
ANSWERS: 2
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The dollar ( Canadian ) is very stong at the moment, while the US$ not as such, the recent banking problems have hit it, like it has hit us in the UK. I suspect that the Canadian dollar will match and overtake the US$ in the next few days. Hmmm, Rince the finance expert LOL, maybe I should buy some :-)
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Yes -- up from US$0.65 at the start of 2003 -- http://finance.yahoo.com/q/bc?s=CADUSD=X&t=5y Hard to imagine it stopping now, just shy of the $US1. The gov't could intervene, but I think it's unlikely too. I also think there's a psychological barrier to parity, so I think it could take longer than we'd expect. Just by looking at the graph you can see it's sort of stuck on $0.95. The interest rate cut in the US, further strengthened the C dollar -- that's a one off though -- there should be little more influence from that. Then consider almost daily new all time highs for oil prices... which also help C$ ... when the price of oil goes down, so will the C$ -- so seems to me, "all time high" is risky territory for taking bets on when parity will happen.
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