Canadian Dollar (FXCAU : US$0.9982)
Net Change: 0.0092, % Change: 0.01%
Porsche buyers are relieved. The Canadian dollar continued its climb on Monday, reaching levels not seen since July 2008, after Friday's strong jobs report in the U.S., indicating that the world's economy continues to recover. The Canadian dollar also rose against most other major currencies, including the Australian dollar, and other "resource" currencies. The rising currency gives the Bank of Canada some breathing room in delaying any increases to its key interest rate. The Bank of Canada next meets on April 20, 2010 (then again on June 2 and July 20) to determine whether it will raise interest rates. Mark Carney, the bank's Governor, has stated that the bank would not raise rate before the end of the second quarter, unless inflation expectations began to rise to unacceptable levels. The rising Loonie will lower the cost of imports, reducing pricing pressures, and slow exports, reducing economic growth, which may give the central bank more room to wait for any increasing in its key
lending rate. Already, Porsche has responded to the higher dollar in Canada, announcing that it has introduced a Canadian Currency Credit program to lower prices - problem solved.