Dollar parity imminent, Royal Bank says
November 16, 2009
16 November 2009
Dollar parity imminent, Royal Bank says
This article is excerpted from the 16 November 2009 edition of “globeandmail.com”
Canada's strong housing market recovery “is providing Canadian dollar bulls with more fodder to retest parity,” Royal Bank currency strategist Matthew Strauss said Friday.
“We remain confident that …parity is not an issue of ‘if' but ‘when',” Mr. Strauss said in a research note.
The Canadian dollar … closed at 95.37 cents (U.S.) Friday, up 0.68 of a cent from Thursday's close. …
The strength of the Canadian housing rebound reflects a broader economic recovery, which supports a stronger Canadian dollar, he said.
“Although we are hopeful that the U.S. housing recovery will gain traction through 2010, it is unlikely to surpass the recovery in Canada as higher commodity prices rekindle economic activity in commodity-rich Western Canada,” Mr. Strauss wrote. …