Canadian Dollar DOWN 3% so far this week (June 17-21/2013)

[pierrelebel]

http://finance.yahoo.com/q/bc?s=CADUSD=X&t=5d&l=on&z=l&q=l&c=

[brandeentertainment]

I know this hurts me very badly as it effects gold price and my job is now on the chopping block due to many things affecting the gold price and one major factor being out week dollar... boooooooooooooooooooo

[pierrelebel]

"and one major factor being out week dollar.."

Actually, a weak Canadian dollar is one of the few things helping gold miners these days.

With gold trading at US$1,278 a troy ounce, Canadian miners would receive Cdn$ 1,278 if the Canadian dollar traded at parity with the US diollar.

With gold at the same price of US$1,278 a troy ounce, Canadian miners receive Cdn$1,342 with the Canadian dollar trading at a 5% discount to the US dollar (US$1.00 = Cdn$ 1.05).  Since expenses of the Canadian gold miners are mostly in Canadian funds, they have a net benefit in a lower Canadian dollar.

It may not solve all the problems facing gold miners but a lower Canadian dollar does help.

[inuk_the_polar_bear]

I think the Cdn dollar is over valued.

[reallynicestamps]

I'm glad about the drop in the loonie.

It makes my domestic purchases cost less (in US dollars, which is basically how I keep my books) and my sale prices higher.

Still remembering the golden days of the 85 cent loonie.

[pierrelebel]

'I think the Cdn dollar is over valued'

I agree.  However, it does not change the fact it has been trading in the US$0.96 to US$1.04 range for the last two years

http://finance.yahoo.com/q/bc?s=CADUSD%3DX+Basic+Chart&t=2y 

At the end of the day, the foreign exchange market decides what the Canadian dollar is worth, regardless of what we know.

Hopefully the current trend will continue to eventually reach US$0.90 per Cdn$1.00.  Such drop will result in some inflationary pressure in Canada on prices of imported goods.  On the other hand, it should help our manufacturers, natural resources producers and their employees.

[inuk_the_polar_bear]

Regardless of what we "think" we know. The Cdn economy is very stable. Banking system is one of the most, if not the most, secure in the world. While the rest of the world panicks with "OMG! What are gonna do!!" we wonder if there is hockey on.

The world sees us different than we see ourselves. We are dull and boring. The world's investors like dull and boring.

[doumb21]

It covers the Paypal conversion fees 🙂

[inuk_the_polar_bear]

When I started ten years ago, the exchange rate covered everything and made a profit. Then it went up a nickel a year. When it hit a few cents above, I was crying.

Oh well, it is only money.