The above figure was the value of the Canadian Loonie against the American Greenback.
You have to love a people that don't take money too seriously and call their basic coin a Loonie with the image of a duck on it. How different that the sombre paper Greenback with the image of noble Presidents on it and the words, "In God We Trust". Wow, how serious that is! Does this say anything about the nature of our two countries? I wonder!
(When they came out with the two dollar coin it got named a Toonie (even more ridiculous than Loonie). Canadians actually talk seriously about their money using these silly nicknames. In fact, the Loonie has found a place in Canadian mythology when one made it into the Hockey Hall of Fame. ( For those of you who don't know the story it was secretly imbedded in the ice at the Winter Olympics in Salt Lake City by the Canadian who was in charge of the ice surface. The Canadian Men and Women's hockey teams won the gold metal. Hence, the elevated status of the Loonie.) http://www.hhof.com/html/olypress.shtml
Outside Echo Bay, Ontario the Loonie is raised proundly displayed for the designer of the coin Robert-Ralph Carmichael, was from that community.
I am not sure why the Loonie has become so valuable. I remember long ago in the '50's when it was $1.05. But just three or four years ago it touched $0.61. So its value rise has been dramatic.
Apparently, the rising value of oil, which we export , and base metals of which we have plenty has something to do with it. The fact that the Canadian economy is sound and that for at least the last dozen years Canada has not had a federal deficit, in fact surpluses seem to always be bigger than predicted. Canada is in the process of reducing its National debt. We are the best economic performers among the G8 countries. Given Canada's stable government and society Canada has to be viewed as a good place to invest. I am no economist. There are other reasons I am sure.
How the mighty has fallen
The biggest reason for the rise in the value of the Canadian dollar in my opinion is the decline in the value of the American dollar. Once the standard currency of the World the US currency is being challenged by others, like the Euro. I noticed this morning some fashion model wants to be paid in Euros rather than US dollars. This is an indicator of the dropping confidence in the US dollar and economy. The day oil producing countries start to demand payment in Euos rather than US dollars, ( as Venezuela and Iraq, before the invasion, threatened to do) the US dollar will drop dramatically in value.I read of muttering of a worldwide recession triggered by the US economy.Time will tell.
The legacy of the Bush administration will include the devaluation of the US dollar. It has paid for a war on borrowed money, run up a staggering deficit, while cutting taxes for the wealthy few. Now the US is indebted to the World's rival nation and potential enemy, China! Seems to this simple soul that you don't want your enemies holding the mortgage on your house and your loans. The day may come when they demand payment.
Of course, in currency exchange there are always winners and loosers. Canada is winning in selling some resources to the US and it is easier to travel to the US and gret bargains. Canadian NHL hockey teams pay less to travel in the US as that league functions on US dollars. But it is also harder to sell manufactured goods into the US. And, Americans are reluctant to visit Caanda after being spoiled by our traditionally lower dollar. The US will do better selling goods abroad. But American will find imported good expensive and travel abroad to Europe costing more. Since the US has to purchase oil on the open market it will be a drain on the economy.
They say Canada's dollar is over valued these days. It may go up to $1.10 US before it settles in at $0.95. I don't know most of this is a mystery to me. It the meantime I am enjoying the thought the the lowly loonie has risen above the US Greenback.