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Should Canadians Be Worried About the Weak Loonie?

A weaker Canadian dollar poses a threat to imported inputs to Canada's production machine, and to future Canadian investments abroad. But the soaring U.S. dollar isn't the only currency in play. Movements in other currencies are less dramatic. Perhaps this is an opportunity to scan the globe both for inputs to our production process and for direct investment undertakings in less-traditional markets.
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What Oil Prices Are Doing to Mexico's Economy?

In contrast to the snow-bound North, the weather for my brief trip to Mexico last week was close to ideal. It was in stark contrast to the economic weather in emerging markets these days, which is more like what the US Northeast is currently coping with. Is Mexico's economy more in keeping with its sunny skies, or is the situation as gloomy as in other emerging markets?
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Playing Ball With China

If you build it, he will come. In this case, "it" is not a baseball diamond, but a renminbi (RMB) hub, and "he" is not Shoeless Joe Jackson, but rather a business community eager to trade and invest in RMB. So far, the "build-it first" approach has paid dividends for Hong Kong, London, Taipei, and Singapore. Frankfurt, Luxembourg, Seoul, and a host of other jurisdictions are also showing initial promise after recently signing hub agreements. But will this approach work for Canada?

Currencies Are Another Casualty of Quantitative Easing's Final Act

Just over a year ago, markets went into a tailspin. At that time then-Fed Chairman Bernanke made what was supposed to be a benign announcement that gave new meaning to the word "taper." Currencies were thrust into the mayhem well ahead of the statement becoming action, as markets tried to anticipate the pricing effects of this new monetary regime. Tapering is now well underway; how are currencies weathering the storm?

Is the Loonie Really Losing it?

Stable is not a word that can be used to describe much in today's economy. A notable exception is the Canadian dollar. The loonie has soared in a reasonably tight range around parity with the U.S. dollar for 3 years now. Although exporters would prefer a lower level, the stability has made activity and cash flows somewhat more predictable. Now, the loonie is losing some loft; what's happening?
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Does the Loonie Trump the Greenback Yet?

Mention exchange rates and most Canadians will immediately assume U.S. dollars. With most of our trade still denominated in USD, the fixation is natural. China is seen by many as an upcoming reserve currency, but that day is still a long way off. On both Canadian and world stages, the greenback still takes the lead role. But as we move into the next growth cycle, others will play increasingly significant supporting roles.

Loonie Drops Below Parity

TORONTO -- The Canadian dollar was below parity with the U.S. currency Wednesday morning as turmoil in Greece persuaded traders to avoid riskier assets like the loonie and opt for the perceived safety...