Three cents to parity
>>>Hmmm. Forecast to be $0.98 by the end of next week. CNE pays out today/tomorrow. Looks like I will miss that extra penny. Too bad. I suppose that Mrs Cricket will be pleased with the roughly $0.05 gain = 5% since last month. I woon't turn it down. Commander?? <<<
TAVIA GRANT
Globe and Mail Update
September 14, 2007 at 1:20 PM EDT
The Canadian dollar topped 97 cents (U.S.) for the first time in three decades Friday, rekindling talk of parity with its U.S. counterpart.
The currency rose as high as 97.23 cents from Thursday's close of 96.83 cents. The loonie extended recent gains after reports showed lacklustre retail sales and industrial production in the U.S.
In Canada, by contrast, a report showed a hefty rebound in manufacturing shipments.
“The Canadian dollar is in focus as the parity watch is on,” the Royal Bank of Canada said in a note.
It's far from good news though, for exporters that are seeing profits plunge as their goods become more expensive.
Tembec Inc. said Friday it pulled its lumber output off the North American market because current prices don't take into account the surging value of the Canadian dollar, Reuters reported.
“Tembec has temporarily halted its lumber sales due to the strong Canadian dollar and pricing concern,” Tracy Dottori, corporate manager of organizational development for the Canadian lumber, pulp and paper maker, told the wire agency.
The news comes as several strategists think the currency will appreciate further. The loonie will likely hit 98 cents by the end of next week “as the greenback continues to be pressured across the board,” said David Powell, currency strategist at IDEAglobal.
Sentiment against the U.S. currency, which had hit record lows this week against the euro, soured further Friday with a report showing retail sales posted a smaller-than-expected increase. That added to fears that consumers in the world's largest economy are putting the brakes on spending.
In Canada, meantime, manufacturing shipments unexpectedly jumped to a four-month high, rising 2.3 per cent to $50 billion after a drop in June. That adds to healthy reports lately on housing, jobs and trade. |
