OTTAWA, Ont. — Manufacturers and exporters that ship into the US are beginning to reap the benefits of a falling Canadian dollar.
The Canadian dollar traded below US$0.85 for the first time since November, 2005 yesterday, leveling the playing field for Canadian exporters. In November, 2001, the loonie was worth just 62 US cents.
Some Canadian analysts are expecting the dollar to fall further, which is good news for Canadian manufacturers and exporters.
“I think 82 cents is a comfortable level for the manufacturers and exporters,” Ted Carmichael, chief Canadian economist for JP Morgan Chase, told the Canadian Press.
“The dollar is still relatively high, but certainly better news than 90 cents,” Jayson Myers, chief economist with the Canadian Manufacturers and Exporters told the Canadian Press. “It’s a relief that’ll help cash flow. The other part of this, of course, is that commodity prices, energy prices are weakening as well, and so that will help the cash position of manufacturers, particularly if they’re exporting.”
– With files from the Canadian Press
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