Canadian dollar goes briefly above parity with U.S. dollar

Toronto - In midmorning trading, the Canadian loonie exceeded parity with the United States dollar for the first time since July 2008. Rising oil prices is said to have contributed to the American dollar's decline.

Digital Journal reported on Monday that the Canadian dollar was within a hair of parity with the U.S. dollar as it rose to 99.90 cents U.S. before contracting to 99.7 cents U.S.. However, at approximately 10 a.m. today, the loonie traded as high as 100.07 cents U.S. before contracting below parity, which is the first time since July 2008 that the Canadian dollar has reached parity with the U.S. greenback, according to The Canadian Press. Most financial experts and economists believe the Canadian dollar will be around parity with the U.S. dollar for the next several years mostly due to the weakness in the U.S. dollar and the American economy, reports 660 News. CBC News notes that the rising of oil prices has also been a contributing factor to the decline in the U.S. greenback. TD Financial’s Deputy Chief Economist Craig Alexander did note, however, that there could be a downside to a stronger loonie because exporters are going to be heavily impacted. Nevertheless, Alexander believes the days of 80 cents U.S. are gone and the future will have 95 cents U.S.