Loonie reaches parity with US Dollar

The Canadian dollar, known to us Canadians as the Loonie, has reached parity with the American dollar for the first time in 30 years. This has been a story Canadians have been following for years now as the Loonie has risen over 60% over the last 5 years. In real terms, that means that my Penn education now costs less than half as much as it did my freshmen year and that since my assets are denominated in Canadian dollars, my net worth has risen 60% relative to my American peers. Not bad.

This story here has to do with the US dollar weakness against all major currencies and will likely continue its decline as global current account imbalances work themselves out.

With oil closing at record highs above $80 and the mortgage crisis continuing to take its toll, things are not looking good for the US economy.

Cross-posted at Canadian Liberal @ Penn

~BT