Rise of the US Dollar

If you are a Canadian, it is unlikely you missed this shocking news of our depreciating Canadian Dollar against the mighty greenback US Dollar. It's funny 2 other PF blogs cover the same topic today as well

Today CAD has dropped to 4-year low of 78 cents against $1 USD. The days of $1 CAD = $1.10 USD are in the history. Let the chart speak for it self, USD has appreciated 23% in the last month against CAD

There are many reasons, as many articles point out

• Crude oil prices have fallen sharply and causes the depreciation of CAD
• Everyone is buying USD for the safe haven and the treasury bills despite the low interest rate and yield
• Hedge funds and traders are covering their USD positions
• It is a irrational market. It's the economy, stpuid!
• Because USD should be down with the supply-and-demand economy model, as US governments inject billions of dollars into the circulation which dilute the value of the USD

How does this affect me personally?

• No more US shopping trips as things cost more than here now
• Watch my USD-denominated Canadian equities fall like crazy (Manulife, Research In Motion, BCE)
• Another lesson learned: Purchase equities in their native currency. Otherwise the currency can either hedge for you (hurts less), or go against you (hurts more)

Are you affected by the currency as well?