bodhisattva wrote:
Quote:
The Canadian dollar is constantly being measured against its U.S. counterpart because Canada and the U.S. are neighbours and form the world's largest trading partnership.
The loonie's been flying in large part because the U.S. economy has been struggling to get off the ground. Washington is facing budget and trade deficits that have never been higher. In 2005, the U.S. bought $723.6 billion more in foreign goods and services than it sold, registering yet another record annual trade deficit.
http://www.cbc.ca/news/background/dollar_cdn/
I am going to have to say that is only a part of the problem.
The credit crunch due to the subprime mortgage problem here in the States, has finally spread to Canada. Coventree Inc, an issuer of asset backed commerical paper (debt purchasing) needed emergency funding this morning.
Also, because the global equity market's are crashing, people are pulling their money out of foreign investments and putting their money back into the "safe haven" currency; the USD.