Loonie Hits New High
Yesterday, two members of the Synergy Merchant Services family made a friendly bet about a series in the current NHL playoffs. “I bet the Coyotes don’t win a single game against the Red Wings,” one of the reps predicted, “They’ll get swept.” “I bet you Phoenix wins next game,” replied his co-worker, “Let’s bet on it. A buck says Wings lose tonight.”
So with that, a handshake was made and a one dollar wager was placed on the table. With the Detroit Red Wings sweeping the Phoenix Coyotes (soon to be the Winnipeg Jets again?) last night, the first of our betting reps came into work today with a big and boastful grin on his face.
“Where’s my dollar?” he asked his losing friend. “Here you go,” he replied handing him an American one dollar note, “I was in Buffalo last weekend and had a few of these left over anyway.” “Nope,” said our winning rep, “that won’t do. I want a loonie, don’t try to undercut me with this thing!”
The rest of the office within earshot burst into laughter. It was a clear declaration that the Canadian dollar had truly reached a position of dominance. And as Reuters reported yesterday on The Toronto Sun’s website, the loonie is now the strongest it has been in three and a half years.
The loonie currently stands at approximately $1.05 U.S. That essentially puts the U.S. dollar at a current worth of 95 cents Canadian. The Reuters article notes that the “renewed demand for carry trades, higher commodity prices and above-forecast inflation in Canada” has contributed to the strength of the nation’s currency.
As we mentioned earlier in the week, Canadians shouldn’t be too quick to run across the border to do some shopping with their stronger money. It’s important to locate the best prices possible before assuming better deals are available outside of the country. Then again, there are items in Canada that still seem to be priced higher than they would be in the States in spite of the dollar value difference.
Perhaps, instead of shopping in the U.S., you may want to place some bets on the NHL playoffs with some of your American friends. If they lose the bet, be sure to remind them that they owe you in Canadian funds. And if you lose, feel free to send an American greenback their way!