Citing continued and growing economic strength in the country, the Canadian dollar is expected to remain on par with the U.S. dollar for some time to come, said Finance Minister Jim Flaherty Wednesday at a think-tank discussion at the Woodrow Wilson Center for International Scholars in Washington, D.C.
"It is unreasonable, given those fundamentals, for anyone in Canada to expect the Canadian dollar to go back to the days when it was significantly devalued vis-a-vis the U.S. dollar," Flaherty said. "It makes sense for the Canadian dollar to be much closer to the U.S. dollar than it was for some years."
Particularly in recent weeks the Canadian loonie has been in close proximity to the value of the U.S. currency, reaching a two-and-a-half year high of $0.98 Wednesday, according to the Toronto Star. However, the relatively even values have been a nuisance to Canadian exporters who get paid in U.S. dollars.
The strength of the loonie likely contributed to last quarter's decline in Canadian exporter confidence, as reported by Export Development Canada.
In response to the recent surge in value, the Canadian government has taken measures to lower corporate taxes, reduce tariffs and extend an accelerated capital cost write-off.
