The loonie is flying high…again
Like a broken record, the Canadian dollar has hit another modern day high by topping the $1.10 (U.S.) mark.
The dollar has been soaring for months now and since March it has jumped up a full quarter in value. Many say the rise shows no signs of stopping … that is except for one economist.
This morning I spoke with Fred Ketchen with ScotiaMcLeod who says the loonie is going to dip in altitude and drop as quickly as it flew up up and away. He predicts in the next six months our dollar will fall 10 cents and back to parity. Ketchen believes after that we will be hovering around the U.S. dollar mark for another six months to a year at least.
So what does this mean for you and me?
Ketchen explains there are some industries struggling because of the value of our dollar and this drop would be a great help to them. He says it would ease pressures and allow them to deal with the new dollar. He doesn’t believe it will fall below 90 cents for a long time and as always, companies will adjust and adapt to deal with the challenges of a higher dollar than we are used to.
I don’t know about you but I am seriously considering a trip to the bank. I’ll take out a grand or two in American currency and wait for the loonie to drop…then cash in.