During the 1970s, the Canadian dollar was more valuable than the USD, but it's never regained that level. For more than a decade, inflation in the Canadian dollar (also known as the "loonie") has been relatively low. About 85% of Canada's international trade is with the United States so most Canadians are concerned how their dollar performs against the USD. After the United States, most exports head to the European Union collectively, Japan and the United Kingdom.
On world markets, the Canadian dollar often moves in the same direction as the U.S. dollar but less dramatically. A rapid rise in the value of the Canadian dollar increases the price of exports to the U.S., but a stronger dollar makes it possible for Canadian companies to purchase materials from overseas.
0 comments