Canada posts record deficit
Canada's current account has fallen to a record deficit in the second quarter, as the rising Canadian dollar has undermined export markets. Higher metal and commodity prices, in combination with flat global trade and a stronger Canadian currency have significantly reduced Canadian export levels in 2009.
So far the Canadian loonie has gained 12% against the US dollar this year on the back of recovery prospects. This has led the central bank to comment that rate hikes could be on the cards, though there is a worry among economists though that the currency rally will outpace exports and undermine recovery. In the latest current account snapshot machinery and exports fell by CAD3.5 billion while industrial goods fell by CAD2.2 billion.
Currency transfer rates for the Canadian dollar are currently at USD0.9231 and GBP0.5660.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.