[NefCanuck]

Frost__2001,Oct 19 2005, 10:26 AM Wrote:No real Suprise really, I mean look at how fat our Dollar is shooting up against the american green back. Our Dollar hit highs it has not seen since the early 90's and it's still climbing every other week or so. So usually when they raise the interest rate it's always when our dollar is on the rise I find.
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Except that raising the interest rates actually pumps our dollar up higher as the government T-bills get a better rate of interest and are purchased.

No, what's pushing our dollar up is the price of oil right now. Since we're sitting on so much of it and now that the price is as high as it is, its actually worthwhile extracting it from the ground (Thinking Alberta Tar Sands here) which makes the Canadian dollar a great safe haven from the US greenback.

Add in a spike in interest rates and unless the US does likewise, 90cents here we come <_<

NefCanuck