The Canadian Loonie Coin

If the currency of a country is like its stock and is the health of its economy, the Canadian dollar also called the Loonie seems to become the best example as it raced ahead of its southern counterpart’s currency. The Loonie’s rise to beyond parity, with the US dollar is being touted as a reproduction of the Canadian economy’s economic health vis-à-vis the G7 economies. The reason for the surge is the Canadian central banks proposed to raise interest rates in the best interest rate review in June.

Sector indices in the Toronto Stock Exchange list energy markets, information technology, industrials, health care industries, gold, mining, fiscal services, and real estate, among many others. Trading hours for the Toronto Stock Exchange is 9:30am to 4:00pm Monday through Friday. Settlement for any trades occurs on the 3rd day after purchase. Also, there is an after-market session from 4:15pm to 5:00pm ET Monday through Friday. Canada, the United States and European companies are listed on the TSX.

Thus, while the Loonie may go above parity with the US dollar or may represent a tad lower than parity at other times, its strength seems to be there to stay for some time, especially until a number of the other G7 economies perk up.