The dollar surged past 93 cents (U.S.) yesterday and interest rates look to be heading higher.
That made it a bad day to be an exporter. And it may turn out to be a bad summer to buy a house or take out a loan, but at least you'll get a break on orange juice.
The Bank of Canada said yesterday that it had underestimated the speed at which Canada's economy is growing. Core inflation – or the cost of goods minus energy and food – was at 2.5 per cent in April, well above the target of 2 per cent. Economic expansion, at about 3.5 per cent in the first quarter, and the growth of the dollar were both above expectations, the bank said.
The investment banking division of the country's largest bank now expects the currency to hit 96.15 cents US by the end of September.
The loonie hasn't been above 96 cents since early 1977.
The currency, currently just above 93 cents, is up about 8 per cent so far in 2007 as traders anticipate rising interest rates in Canada and lower rates in the United States.
That made it a bad day to be an exporter. And it may turn out to be a bad summer to buy a house or take out a loan, but at least you'll get a break on orange juice.
The Bank of Canada said yesterday that it had underestimated the speed at which Canada's economy is growing. Core inflation – or the cost of goods minus energy and food – was at 2.5 per cent in April, well above the target of 2 per cent. Economic expansion, at about 3.5 per cent in the first quarter, and the growth of the dollar were both above expectations, the bank said.
The investment banking division of the country's largest bank now expects the currency to hit 96.15 cents US by the end of September.
The loonie hasn't been above 96 cents since early 1977.
The currency, currently just above 93 cents, is up about 8 per cent so far in 2007 as traders anticipate rising interest rates in Canada and lower rates in the United States.