Top Exporter Worry? Dollar Swings

(Globe and Mail)

Forget rising interest rates. Exchange-rate fluctuations are the top concern among Canadian exporters for the coming months, a survey showed Wednesday.

In the next half year, 58 per cent of exporters say volatile currency movements are the top barrier to growth, a HSBC global survey on trade confidence showed. It’s the first time the survey included responses from Canada.

The Canadian dollar has climbed 14 per cent in the past year, and hit parity last month. Concerns about European sovereign debt, however, have weighed on the loonie lately, which is now trading at a two-month low of 96.98 cents (U.S.).

“Fluctuations in exchange rates represent the biggest barrier to trade,” the report said. Canadian businesses are “cautiously optimistic” about trade growth and the global economy, while emerging markets such as Brazil and Indonesia tend to be the most confident. Read more here.

Related: Canadian Dollar Sinks Further On Euro Zone Crisis Fears (Reuters)