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> The Canadian dollar has collapsed VS the USD. The CAD is sitting at about $0.70 USD right now, which isn't really outside of it's typical range, and not real
by papercrane 2y ago
> The Canadian dollar has collapsed VS the USD.
The CAD is sitting at about $0.70 USD right now, which isn't really outside of it's typical range, and not really unexpected given the difference in interest rate now between Canadian & US interest rates. If you look at historical prices it looks more like business-as-usual, the CAD usually bounces between 0.70-0.80 USD.
- srid 2y agoCAD was actually on parity with USD between 2007-2012.
- papercrane 2y agoYes, but that was a very unusual time and can be attributed to the US financial crisis. In addition to money fleeing the US, the Canadian and US interest rates diverged to strengthen the Canadian dollar.
- glitchc 2y agoThat's actually bad for the economy. Canadian companies benefit from the lower dollar as goods are often sold in USD, but wages are paid in CAD. 0.75 to 0.8 is the historical benchmark for the exchange rate.
- deleted 2y ago[deleted]