Why is the dollar so strong? Exporters feeling the pinch as the loonie continues to rise in value compared to the U.S. dollar

摘要

In late 2006 and early 2007, exporters, including many in the greenhouse sector, saw some relief from the apparent weak-ening in the Canadian dollar compared with the U.S. dollar. However, this seems to have been short-lived. During the first half of2007, the value of Canadian dollar has floated between 0.84 dollar and 0.95 dollar per U.S. dollar and the increase has been particularly sharp in the second quarter. Economists and other constituents have begun to speculate that parity between the Canadian and U.S. dollar may occur for the first time in decades. The relative value of the Canadian dollar is established through the economics of supply and demand, just like other commodities.