Canadian dollar is sinking......

[dmac]

Below .93 US this morning. Investors are shorting our dollar in a big way, expecting it to go even lower.

[Sundancefisher]

Yup. Betting .91.

US economy doing better than us but we are dong better also. Only way to go up now is either increased production in our economy or jacking up interest rates.

I would say bank on interest rates going up suddenly if you want the dollar protected. Otherwise the low dollar helps the economy and makes exports more profitable.

It really helps the oil industry at a good time. Costs are in Canadian dollars and sales are in US dollars.

[rugatika]

[dantonsen]

I think this is monthly trade deficit posting number thirty five in the past 3 years... Canada has been buying more foreign goods than we export for awhile now. Taking that into consideration the lower dollar is probably bad since a larger portion of our economy is based on importing goods and using them.

Higher costs for machinery and goods will squeeze producers of exports (remember we just ship raw commodities so we rely on buying the finished manufactured product from some one else to produce said commoditys)

About 50% of canadas oil consumed is imported from foreign countries so any added benefit to the western energy sector will be wiped out by extra cost paid for foreign oil. Most service companies supply foreign manufactured stuff to our oil and gas companies here in alberta... I am sure some one will eat the 10% haircut and it will probably be the end buyer.

Outside alberta the canadian economy isn't doing very well and we are in a record national debt, also still posting massive yearly operating deficits not seen since the Mulroney years.

Low interest rates probably crimp lending and slow growth... Who wants to lend when the returns are slim? Who ever does lend is probably going to do their due diligence. (business lending) Consumer lending is a different story! haha

[adaras]

Cheap currency = people have money & time for export to new allies with expensive currency €, not US$