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To: Anchan who wrote (320)	6/24/2002 12:43:32 PM
From: ms.smartest.person	Respond to of 5423

[Canadian]Dollar hits 66 cents (U.S.) Richard Bloom 08:30 EST Monday, Jun 24, 2002 The loonie roared to 66 cents (U.S.) Monday morning, carrying its week-long rally forward as investors continued to back away from the greenback. At last check Monday morning, one dollar was worth 65.91 cents, up 0.05 cents from Friday's Bank of Canada close and retreating slightly from its morning top of 66 cents. Last week, the loonie was on a tear, sprinting 1.16 cents — or 1.7 per cent — to its highest level in nearly a year. The loonie remains, however, below its 52-week high of 66.17 cents, set on July 3, 2001. "The fundamentals were already stacked sky-high on the loonie's side — stronger growth, rising employment, a large current account surplus, a solid budget surplus, rising commodity prices," Douglas Porter, senior economist with BMO Nesbitt Burns Inc., wrote in a commentary Monday morning. "So, with the U.S. dollar in broad-based retreat, it's almost like shooting fish in a barrel to call for further Canadian dollar gains in the months ahead." The recent winning streak for the dollar is a sharp contrast to its performance earlier this year, when it fell to an all-time intraday low in January of 61.75 cents. It has risen nearly 7 per cent since from its bottom. As a string of Canadian economic reports beat expectations in recent months, while many U.S. economic numbers have fallen short of forecasts or barely hit expectations, pulling people away from the greenback. Part of the shift resulted from economic news on Thursday that the U.S. racked up a record trade deficit in April of $35.9-billion and a record current account deficit of $112.5-billion in the first quarter of the year. The growing deficit on the broadest measure of international trade and investment flows has been raising eyebrows in financial markets for some time. Other analysts point to the growing interest rate gap between Canada and the United States. The Bank of Canada has already hiked rates twice this year, citing strong economic performance, and is set to make another policy decision in mid July. Its overnight rate sits at 2.5 per cent. Meanwhile, the U.S. Federal Reserve Board has kept rates steady and is set to decide this week what it will do with its rate, which sits at 1.75 per cent. A vast majority of economists are calling for the Fed to not move rates when it concludes its two-day Federal Open Market Committee meeting Wednesday. -------------------------------------------------------------------------------- © 2002 Bell Globemedia Interactive Inc. All Rights Reserved. Terms of Service \| Privacy Policy \| Help & Contact Us \| Back to the top of this page gold.globeinvestor.com