The Canadian dollar is set to reach parity with the U.S in the near future. Shoppers should be planning to cross the boarder to the US for shopping sprees. This could be good news for Americans and not so good news for businesses North of the border in Canada. But if you’re still looking for the cheapest coffee Tim Hortons still strings a cheaper cost on the Canadian side.
Due to the strong wholesale of numbers, U.S banks said it would keep interest rates near zero. A rise in crude oil as high as 99.31 cents U.S.
The Canadian dollar raising almost 5% over the past 2 weeks, showing such a quick recovery from the recession. The dollar rose to parity last in July 2008 but then crashed, some say the high dollar might be here to stay.
This will embark a higher interest rate for the Bank of Canada, although this may tend to have harder effects on Canadian exporters because of the higher prices. Despite the rise, consumers should not expect the prices on products to even out, since companies have a priority on fixed costs. “Prices don’t go up just because the Canadian Dollar has gone up”.