US federal reserve cut their interest rates a 1/2 point to 1% today. Watch the Canadian dollar have a little lift in trading today.
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but it probably won't make it back to par... too bad ... i was hoping I'd be able to buy more when we go to San Fran next week.
my Vancouver friend just told me the dollar was at $0.78 vs US. I haven't been paying attention. I was surprised.
I don't understand why the US dollar is doing so well considering how much the US deficit is
and how much of a trade deficit it has *and* the state of its economy in general being bailed
we don't have anywhere near half those problems in Canada, so why isn't the $CDN doing better?
I'm not an economist - but I think it's because the value of oil and gas has dropped significantly.
a large percentage of Canada's economy is tied to oil and gas - so when it's half the price it was 6 months ago, investors are less likely
to buy Canadian cash, bonds, stocks.
also US companies that are not doing well are buying less from Canada. It affects our exports.
Canada for the Canadians!
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