Canadian Dollar Trades Equal to U.S. for First Time Since 1976
By Haris Anwar and Theophilos Argitis
Sept. 20 (Bloomberg) -- Canada's dollar traded equal to the U.S. currency for the first time in three decades, capping a five-year run on the back of booming demand for the nation's commodities.
The Canadian dollar reached $1.0002, before retreating to trade at 99.93 U.S. cents at 11:01 a.m. in New York. It has soared 62 percent from a record low in 2002. The currency last closed above par on Nov. 25, 1976, the day before the Sex Pistols punk band released their first single, ``Anarchy in the U.K.''
The move to parity marks a milestone for a currency often mocked in the U.S. as ``Monopoly money'' because of its colorful notes and diminished value. Parity also symbolizes Canada's emerging clout in a world economy increasingly short of the energy, grains and metals the country produces.
``It's a long time since those heady days,'' said Frank McKenna, 59, deputy chairman of Toronto-Dominion Bank, the country's third-biggest lender, and a former ambassador to the U.S. ``Canadians should understand that this is a badge of confidence in our country.''
Canada, the world's eighth-biggest economy, has benefited from rising demand for copper, gold, wheat and oil from neighboring U.S. and emerging economies such as India and China. The country is the world's largest producer of uranium, the second-biggest exporter of natural gas, and sits on the largest pool of oil reserves outside the Middle East. Canada is also the world's second-largest exporter of wheat, which rose to a record this month.
Last Updated: September 20, 2007 11:03 EDThttp://www.bloomberg.com/apps/news?pid=20601082&sid=awhVMIymbX0w&refer=canada