Friday, September 14, 2007

My favourite currency-Canadian dollar - Part 3

Oil is propelling Canada to a new economic height. With the diminishing world energy resources and rising international oil price, Canada stands to gain. Against this backdrop, it is only natural for CD to appreciate to reflect the booming oil-driven economy.
Canada has the world's known (or proven) largest oil reserve and is presently the second biggest producer in world's ranking. And Alberta Province is the centre of Canada's burgeoning petroleum industry.
I have been tracking CD and noted that it moves in close tandem the oil price. CD has been appreciating against greenback and its exchange rate is now close to 1:1.
These few days, the international oil price surged up. I noted that CD also gained strength.
I concur with Lawrence Wong that it is a matter of time that CD's exchange rate with greenback is going to break 1:1.
The picture shows the location of Alberta Province (shaded red). The map is downloaded from Wikipedia.

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