sabrinaraiblog

The Canadian dollar has depreciated significantly since October 2008 and recently dropped over two US cents, below 96 cents US on September 20, 2011. On Wednesday the US dollar straightened up against the euro and yen after the U.S. Federal Reserve rose up its aid to the weak economy. Many traders around the world are beginning to get worried and nervous about what is coming. Growth in the economy of China still continues as Europe still faces debt. As we saw in July, the Canadian economy grew, but it still remains uncertain how China and the United States could affect the decrease in the Canadian dollar. This uncertainty in the global economy has pushed investors to a safe option, the greenback (US dollar).  Since January, this was the first time that the loonie dropped below parity. The loonie will not be reaching parity any time soon this year, but it will “not have much impact on consumer behaviour,” says Bruce Cran. Canadians are still going to go over the border and travel to the United States even though the loonie has dropped in value.