Quote:
Originally Posted by ejanusie
mmmm, I'm really concerned here now.. considering I export items from the United states, its been a good haul, but recently watching the CDN dollar drop like a fly...
Does anyone here predict the possibility of it going back to 1.01.-2 in the near time? I know everyone is speculating 1.7 - 1.10 ... If so, for how long?? will we ever be parity again??
Thanks in advance.
erik
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It would probably be wise to put in some longer term hedging positions (depending on the notional size of exports you do).
Consider the US dollar on a trade weighted basis has just bounced off a recent record low. That gives a good feeling for how precarious the dollar's decline has become.
At these levels, it isn't worth speculating with your business by attempting to squeeze out a few more pennies with the risk that the exchange rate could be C$0.15 or C$0.20 higher by 12 months time.
