C$ at Par!

MaxPower September 20th, 2007

Canadian dollar at par with greenback for first time since ’76 - Thu Sep 20, 2007 9:22 AM EDT

TORONTO (Reuters) – The Canadian dollar reached parity with the U.S. currency for the first time in 31 years on Thursday, according to Reuters data, supported by lofty commodity prices, a strong domestic economy and concerns about a U.S. economic slowdown.

The Canadian currency has been threatening parity for most of 2007, but a number of factors have aligned recently to give it a boost to the key level, including recent rate cuts in the United States.

It is now as I type this, the C buck just hit 1.000 bringing the loonie to the level of the US “dollarette” or as I like to call it – the American Peso.

  • http://www.r4nt.com D4V

    Haha.. American Peso.. Nice.

  • grfxguy

    Banks are still dinging almost 3.5% on exchange rates, before fees, right now.

  • http://www.r4nt.com D4V

    My Amex gives me 2.5%…

  • http://www.r4nt.com MaxPower

    Well that’s not new, even when the C buck was $0.62 they charged 2 – 3% fees. Thats not even that bad, exchange your money at a money exchange stand in Europe or at the airport and get ready to pay 10%+

  • Grfxguy

    Nah what I mean is the dollar is trading at par, but the bank is giving me 0.97 something on the exchange rate, then charging a fee on top of that.

  • Grfxguy

    Mmmm…can you say Canadian dollar higher than US? I sure can. Currently sitting at $1.02 US!

  • Grfxguy

    Hee hee… I just bought US$ for my trip to Hawaii in December…$300US only cost me $294 CDN, including the handling fee! It was very satisfying.

  • http://www.r4nt.com MaxPower

    So has anyone found somethinig that is way cheaper in the US (which I may actually need)? I am heading down for a weekend and will do some shopping – jeans & shoes are high on my list but it looks like a lot of electronics are now closer in price.

    I looked for a new camera on Bestbuy.com and Bestbuy.ca and the C$ price was marked as “on sale” for an amount which brought it to exactly the US$ price.

    The Half Life 2 “orange box” is $5 more in Canada…

    Any ideas of things I should check out?

  • Grfxguy

    Beer!

  • http://www.r4nt.com MaxPower

    Yeah I have plans for the duty free shop on the way back…

  • http://www.r4nt.com MaxPower

    Wal-Mart announced this morning that it is now charging the USD price for all books, greeting cards, gift wrap and magazines, unless the C$ price is lower, in which case they will charge the C$ price.

    Which is nice, but the CAD hit $1.06 yesterday, a 130 year high, so actually if you’re paying the USD price you’re getting ripped off by 5%! Crazy.

  • http://www.r4nt.com MaxPower

    The C$ hit $1.07 today on good job growth in Canada and an interest rate cut in the US.

    If anyone has a major purchase to make in the US, consider doing so now, I doubt the C$ will sustain this kind of momentum for much longer.

    That being said, I would have never called $1.07 so there you go.

  • http://www.r4nt.com D4V

    Grr.. Canon 5D is extra tempting right now, but my gut says wait till the MkII next year.. Grr..

  • http://www.r4nt.com MaxPower

    What website do you recommend for good deals on cameras? I am thinking of upgrading and don’t know where to look other than the normal consumer sites.

    I would want something non-professional, unlike Mr. MkII there :P

  • http://www.r4nt.com D4V

    The only site I really use to buy photo stuff from is bhphoto.com.. You gotta pick the most expensive shipping method though to really take advantage of it otherwise duty will kill you (I think it’s expedited and you don’t get charged duty, or it’s flat rate or something)..

  • Grfxguy

    I’ve been ordering BMW parts like mad from the US for the past month now. Half freaking price, and since I do my own work, dirt cheap labour too :)

    If you’re shipping ANYTHING from the US, be sure to inquire about USPS shipping. Other companies (UPS, FedEx) charge massive “brokerage” fees, usually between 45-90% of your actual purchase (ask me about my $45 part that suddenly required another $35 at the door). USPS charges a straight $5. It takes a little longer but it’s worth it.

  • Grfxguy

    One more: The expedited takes care of duty and broker fees, but GST is still owing at the door. Duty is 6% and so is tax.

    See the Customs agency website for a handy list of exempt items!

  • http://www.r4nt.com MaxPower

    Ok after doing all my checking on bhphoto.com and on outpost.com I have found the camera I want runs for $50 – $70 cheaper in the US. When you add expedited shipping and GST on you’re looking at about $30 – $40 cheaper.

    I am going to print out the bestbuy.com price of the camera (which is $40 cheaper than the bestbuy.ca price) walk into the store and see if I can get it for the US price… so I’ll see if that works first.

  • http://www.r4nt.com MaxPower

    Hope some of you got somes US$ previously – the C$ is now $1.043, down from its high of $1.10.

  • Grfxguy

    What about the market dropping 600 points in the last few days?

  • http://www.r4nt.com MaxPower

    Yup. Little to no impact on the CAD though – the currency trades without any connection to the stock market.

  • http://www.ianharding.ca So-CoAddict

    And the yo-yo returns…

    The Canadian Dollar is back down to below the US dollar ($0.98 as of 4:30pm MST today).

  • http://www.r4nt.com D4V

    Just in time to get some refunds on some purchases I made in the US.. :P

  • http://www.r4nt.com MaxPower

    And back to par today ($1.0037) thanks to the Canadian economy producing 42,000 jobs in November.

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