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Originally Posted by AllStar
I understand Natural resources...however for the last 50 years Canada has been the richest resource Country in the world.
Wood, Fish, Coal, Diamonds, Natural Gas, Oil, Nickel, Gold, Silver Uranium...added up together they have more combined resources then anybody?
Did the speculators just take notice? I think the US dollar is undervalued.
Of course you are right about Iraq though ;)
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The Canadian government has political reasons to temporarily drive the rate down via the Bank of Canada (ie, "the Canadian economy is strong, look at the exchange rate").
I see no clear rational as to why the Canadian economy could be considered any stronger than it was 5 years ago save for increased prices of natural resources. But that really can't account for a 40-50% slide over 4 years. Historically it has taken 15-20 years for these kind of big changes to take place.