Monday, May 21, 2007
Rising Canadian dollar and Forestry
Recent reports predict that the Canadian dollar will stay strong, and could reach parity with the US dollar. This ofcourse places pressure on Canadian forest companies who sell to the US, because they receive less in exchange when they convert their US sales to Canadian dollars. It could be a rough road ahead for lumber companies, as the outlook is not good for the US dollar, and the Canadian dollar is expected to stay strong as long as metals and oil remain in a bull market.
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Re: “... the outlook is not good for the US dollar, ...”
A “Federal Reserve Note” is not a U.S.A. dollar. In 1973, Public Law 93-110 defined the U.S.A. dollar as consisting of 1/42.2222 fine troy ounces of gold.
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