The Canadian dollar reached parity with the U.S. currency for the first time in 31 years on Thursday, according to Reuters data, supported by lofty commodity prices, a strong domestic economy and concerns about a U.S. economic slowdown.
The Canadian currency has been threatening parity for most of 2007, but a number of factors have aligned recently to give it a boost to the key level, including recent rate cuts in the United States.
The push on Thursday came as the U.S. dollar slumped to a record low versus the euro, allowing the Canadian dollar to briefly touch the historic level versus the greenback.
The Canadian dollar, also known as the loonie, has rallied more than 60 percent since dropping below 62 U.S. cents in 2002, driven largely by the broadly weakening U.S. currency, and by soaring oil and metals prices, which have fueled Canada’s resource-heavy economy.
Via: Yahoo News