Canadian Dollar Approaching Parity with American Greenback Once Again

(CBC News – The Canadian Press)

Canada's dollar opened official trading Tuesday morning at 97.13 cents US. That's up nearly one and a half cents from Friday, ahead of the Canadian Thanksgiving holiday weekend. Experts say a weak U.S. dollar is driving up demand for oil and other commodities, which, in turn, is giving the loonie a boost as it is regarded as a commodity-linked currency by global traders.

While a stronger Canadian dollar is generally good for travellers headed for U.S. destinations, it makes life more difficult for companies that export to the United States or sell goods on the world markets. Canada's export-based industries, particularly the auto and forestry sectors, suffered as the loonie soared above parity with the U.S. dollar in 2007 for the first time in decades.