US/Canada currency conversion continues to go pleasantly haywire

[Mudcat]

All my offshore accounts are in US dollars and they have gotten a hell of a lot more valuable over the last little while. Was it, like, 6 months ago that dollars were at par? Now my US bucks are worth $1.25 each.

I know it is at the expense of the Canadian dollar and maybe this makes me a traitor but, I'm sorry, I have to take a a moment to say

















That is my favorite way to get richer: without lifting a finger.

Of course it is all the same money I lost over the years as the US $$ dropped from its current level down to par. But I am just short-sighted enough to feel good about it anyway!

[Stumpage]

It is an absolutely beautiful sight to behold.....

[donjuan]

I know it is at the expense of the Canadian dollar and maybe this makes me a traitor but, I'm sorry, I have to take a a moment to say

Well it's not really a national pride thing. Sure, having a strong local currency makes it cheaper to go on vacation abroad but if you are exporting, a strong local currency will hurt you and your domestic industries will face more competition from abroad as they will be able to produce goods cheaper.

Anyway, in the future you may want to consider taking out forwards in order to hedge your currency risk as that is certainly an expected growth consideration.

[isetcap]

I remember past discussions on this topic where some brilliant posters stated how disastrous it was that the dollar was so "weak". I guess they were right because now that the dollar is much stronger, the economy is doing great! "Strong" currency is typically paired with under performing economies.

[THE_LOCKSMITH]

it all has to do with the price of oil, and thats been going down hard. Canadian dollar is linked to the proice of oil

[donjuan]

Canadian dollar is linked to the proice of oil

USD is linked to the price of oil since oil is traded in USD.

[BAUS]

I also feel great about this. Hope that it keeps going in this direction.

BAUS

[durito]

You want to talk currency swings. Look at south america.

The colombian peso closed at 2,364 to the dollar today. While that is exactly where it was two years ago it hit as low as 1,650 in June. That's an insane increase in my purchasing power here in 4 months. Apartments that I was looking at that cost $120,000 then would now cost me $84,600.

Same story in Brazil and Chile. It's a great time for a South American vacation from the US.

[cobra_king]

Very true the US dollar is linked to to the price of oil since that is the currency it is traded in, however i think what was meant is that the rise and fall of the Canadian dollar is very much correlated with the rise and fall of the price of oil.

[Mudcat]

Well you guys sound like you know what you're talking about in terms of the price of oil and related economic indicators - but I don't care. I stand by my basic analysis which is:

wheeeeeeeeeeeeeeeeeeeeeee


I believe Stumpage and BAUS and durito concur.



A little known fact: this "emoticon" is actually a photograph of me upon seeing the conversion rate this morning

[20Four7]

Given the current price of oil, and the current state of our dollar we should be paying 90 cents a litre for gas instead of $1.03. the f'n oil companies are going to kill this country.

[Mudcat]

Up more than another cent in the last 24 hours.

My understanding is this is bad for Canadian-based sports franchises. I don't have favorite teams so that doesn't really mean anything to me but I suppose it is bad news for some friends of mine.

So I'll just very quietly

( )

[JerseyShop101]

Same here in Asia, dollar is worth almost 40% more than from 5 months ago. Its unreal!

[Mudcat]

I wonder how far it can go. Is there a point where I should stop being giddy and start becoming troubled for my country?

[durito]

I wonder how far it can go. Is there a point where I should stop being giddy and start becoming troubled for my country?

It's still below where it was 2+ years ago. These things are cyclical. I wouldn't worry about Canada, and I'd be happy about your windfall. I'm just hoping mine sticks for a little while.

[Mudcat]

Still on the move. There was a point about 6 months ago where one of my US dollars was only worth, like, 98 cents. I think it went even lower than that but I'm not positive.

As of this morning a US buck is worth over $1.28.

I do my spreadsheets in Canadian and if I have a $500 win, it sure feels good to fill it in as $640.

It just feels good.

[BAUS]

I love it. 1.29 !

BAUS

[Mudcat]

And here is the sweetest part of all. It is one thing to have those US dollars floating around in cyberspace with their theoretical value.

But today I need to pull in some funds to pay some bills. I figure I need 4K Cdn.

I only have to pull in $3100 from my Moneybookers!!!!!!!!!


SWEET!

[Stumpage]

I agree Mud, there's nothing quite like getting the actual funds in your hands when the rate is this good.....I'll just add as an example the fact that just a few months ago I withdrew $1,500 from my Moneybookers account and it was eventualy processed at around $1450 Canadian...

Last week I did the same, withdrawing $1500 and the final tally when it got to the Canadian end was nearly $1900 Canadian...

Just my own little happy-to-be-me story as our Canadian dollar continues it's nuclear plunge.....

[Mudcat]

And now it has dropped, like, 6.5 cents in 2 days.

It is making me dizzy (and also messing with the value of that Moneybookers withdrawal, which I can't convert until it gets here).

[Stumpage]

Damn....Wasn't aware of today's events. Guess that would be the bubble bursting, at least compared to last weeks lofty heights.....

[Mudcat]

Since the last post it dipped some and got below $1.20 at times. But it was a good week including a 4 cent jump on Wednesday and now it's $1.27.

Things are a bit crazy and volatile but I am going to do a tentative dance for the $1.27.

[mathdotcom]

Nothing anti-patriotic about cheering for the currency to drop. Anyone who exports from Canada is happy about it. It's neither good nor bad (in net terms) for the economy in moderate swings.

So enjoy

[wtf]

the next great shift in wealth will be the collapse of the USD, you heard it here first. you watch.

[mathdotcom]

wtf

did not hear it from you first. has been discussed for past 10 years because of China's handling of USD reserves

[betplom]

wtf

did not hear it from you first. has been discussed for past 10 years because of China's handling of USD reserves

Wrong, I heard it first from wtf.

It has never been mentioned before today.

[wtf]

ten years ago, no way. prove it.

[wtf]

if they said it ten years ago, they were WRONG, has it collapsed?

[mathdotcom]

they didnt say ten years ago that it would collapse ten years or less from that point. they have long discussed it as a long term issue. have been pressuring china to appreciate its currency for years.

[Mudcat]

If there is going to be a collapse in the US dollar, I hope someone will post here a few weeks ahead of time.

Mind you, I'm not sure what I would do about it. Probably just fret and furrow my brow and whatnot. Possibly develop an ulcer.

[mathdotcom]

correct, mudder. you have to hope it just stays this way for a long time. if you take it all out you have to hope the cdn dollar suddenly appreciates..

[wtf]

what i believe it will happen by next summer. it will not be next week. but for sure within a year. not ten years.

this is a new dynamic, not because of a devalued yuan. the US has printed so much money for this bail out, it will create immense downward pressure.

the recent events of deleveraging has caused an upward spike, it will end, soon. watch

[Mudcat]

Back over $1.29 after starting the week at 1.24.

This thing bounces around like a Mexican jumping bean.

$1.29 is extremely deluxe though.

[Nicky Santoro]

this is probably the best news i've heard all year.. this is even better than going 12-0 tonight.. all my money is in US funds.. about 5 yrs ago, it was 1.66.. then the cdn dollar became worth more than the US dollar. i cried.. now back at 1.29.. i love it.. if this thing goes back to 1.66, i will scream.. we're halfway there..

[durito]

what i believe it will happen by next summer. it will not be next week. but for sure within a year. not ten years.

this is a new dynamic, not because of a devalued yuan. the US has printed so much money for this bail out, it will create immense downward pressure.

the recent events of deleveraging has caused an upward spike, it will end, soon. watch

so what are you doing to prepare?