On September 22nd, the Canadian Dollar took a relative nosedive in comparison to its US counterpart. After falling just over a cent on the 21st, which allowed for a close below parity for the first time since January, the loonie backed that up by descending yet another 2.78 cents the next day. As someone who travels down to the US at least once a week, this sort of drop could affect my families lifestyle quite a bit. Normally, almost all of my families shopping needs, as well as gas and weekly golf tournaments are in the states. Sure a 4 cent drop in two days isn’t going to stop my mom from doing her weekly grocery shop across the line, but another one will surely cause her to question it. I decided to look into the drop a little more in depth, now that I am familiar with a few more of the terms used in the articles on business sites. The main cause for the drop is that rising global economic uncertainty has many investors shifting their interest to the US Dollar. I wasn’t aware before, but apparently the US Dollar is recognized as a safe option when the overall world economy heads south.
http://advisoranalyst.com/glablog/2011/09/22/canadian-dollar-plummets-as-stocks-commodities-sink-worldwide/
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