Today the Canadian dollar soared to its highest level since the late 1880s.
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Loonie hits 130-year high
ROMA LUCIW
Globe and Mail Update
October 31, 2007 at 4:36 PM EDT
The high-flying loonie soared to its highest level since the late 1800s Wednesday after the U.S. central bank cut interest rates by a quarter-point and gold joined its fellow commodity crude oil in record territory.
The Canadian dollar reached 106.17 cents (U.S.) late on Wednesday, up more than a penny from Tuesday's close of 104.92 cents. The loonie is now sitting at its loftiest perch in more than 130 years.
In official trading Wednesday, the dollar closed at 105.85 cents.
Part of the reason for the day's surge was a sharp fall in the U.S. dollar, which touched a record low against the euro on Wednesday. The U.S. currency struggled after the U.S. Federal Reserve Board trimmed its key interest rate by a quarter percentage point to 4.5 per cent, the second rate cut this year.
“I did think we'd see the U.S. dollar rally and the opposite is occurring,” said Andrew Busch, a global foreign exchange strategist for BMO Nesbitt Burns Inc. “This action and statement may ignite a much larger U.S. dollar selloff.”
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I'm feeling richer all the time
