Canadian dollar (C$)

The Canadian dollar affectionately called the ‘loonie’ for the loon that appears on the currency, had been increasing once again in value against its U.S. counterpart. It reached its highest value in over 16 years during the summer of 2007. Because of the trade orientation of the economy, the currency’s value impacts the industrial and raw material price indexes as well as the value of the country’s trade surplus. The Canadian dollar stabilized around parity with its U.S. counterpart but then weakened as the worldwide recession set in. The currency climbed in value against its U.S. counterpart in 2011 and continues to hover around parity at the beginning of 2012. The Bank of Canada is concerned lest the strong currency harm recovery prospects.