I can't believe the USD has rallied so much. I think a lot of it is just because of the world wide stock market melt down. Eventually it will turn back around in the other direction. The US is going to print a couple trillion dollars to bailout its financial system. Printing money like that generally always kills a currency in the long run.
Its bad news out there ... the Toronto Stock Exchange now closed lowest level in more than 4 years; Oil is $62ish a barrell, and CAD now down to 78cents.; some pro finance guys are saying TSE will not be up to 11000 to 14000 points in 5 years. This means that after the peak of just over 15,000 points in May, 5 years from now, may not even be back to that level. I feel bad for anyone who had hoped for an early retirement in 2008 because one is down 43% since May and during this period CAD has gone from $108US to $0.77 US ... so there is pain in those investment portfolios.
I think Canada will turn around sooner than most others. You have got the oil exports and oil will be back up over $100/barrel soon enough. Plus the US is planning a massively inflationary bailout of financial institutions, and it's not like we don't already have a ginormous national debt. The USD probably does not have much longer as the world's reserve currency.
With the resurrection of the US$ & the decline of the Turkish economy, the lira has lost about 20% value in the past month - which sucks cuz Western music gear is priced in dollars.
Currency Exchange
Posted - 10/24/2008 : 07:31:17
