Wall Street, Main Street, And Mill Street

摘要

The financial meltdown is having several effects on the paper and print industries in Canada. The economic slowdown means less demand, but exchange rates and energy costs are also having a significant impact. The Canadian dollar hit a high of $ 1.09 against the U.S. dollar on Nov. 8, 2007. Although it receded from that level, it remained close to parity through much of this year and stood at $.97 as recently as Sept. 29. In exactly 30 days, the loonie plunged to $.77, a decline of 23%. But this is not about the loonie; this is really about the U.S. dollar. If we consider gold to be the "gold standard" we see that during that period the price of gold in U.S. dollars fell 16%, while the price of gold in Canadian dollars rose 6%. So most of what we see is really a strengthening of the U.S. dollar, rather than a weakening of the Canadian dollar.