U.S. Dollar is Declining

Canada is reducing the supply of Canadian dollar lead to higher price of the Canadian currency, meanwhile U.S. currency is declining. U.S. dollar was stronger than Canadian dollar for a long time but recently dollar U.S. versus Canadian dollar is now 1:1.03. Main reason is Canada is slowing down the monetary stimulus which includes printing Canadian currency, less supply of money cause higher price of Canadian currency. In the meantime U.S. economy is not going well because it has 14.6 billion deficits and having difficulty to pay it back. Harder to get investment or capital from foreign country nowadays makes U.S. cannot fund those deficit by reliant on foreign inflows of capital. Concerning about business and export, U.S. government is not urging about raising U.S. currency by now but might higher interest rate.

Resources:

http://blogs.windsorstar.com/2013/04/13/my-money-students-should-apply-for-free-money/

 

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