Loonie Trumps the Greenback

November 25, 1976 was a historical day in Canada, it was when the Canadian dollar closed higher than the American dollar. Nearly 31 years later, September 20, 2007 the Canadian dollar again is higher than the American dollar. At one point during the day the Canadian dollar was $1.0002 American dollars. However by the end of trading the Canadian dollar did drop to $0.9981 American dollars.
The article quotes Canadian strengths from our exports to promote the jump in the dollar, but I honestly think that it's from the drop in the American dollar. As the war wages it's sucking America dry and weakening it's dollar, which makes the Canadian dollar appear stronger.
(This article backs my theory. Interestingly it is a Canadian source whereas the first is from an American source.)
Now while I would LOVE to gloat, it's really not that great for Canada's economy. Canada does best when it's around $0.80ish to the American dollar because then exporting from Canada is cheaper and a lot of our economy is export. I understand that I am no economist but I did grow up in BC in an area who's main industry was lumber, and growing up I could see the effects of the rising and falling dollar on the local economy. It was really apparent as I was bussed to school passing the local lumber mill, or waiting at the bus stop watching the logging trucks lug on by. When the economy was strong there was a neverending line of logging trucks and the mill had lots full of fresh lumber and the whole area around the mill smelled of woodchips. (Which to this day still reminds me of home.) However when the economy was struggling there were less trucks to entice to blow their horns; the mill lot was full of old lumber and the sweet chippy smell was less intense.
So while yesterday was a great day for Canadian Pride, and really nails home to Adam and I that this is the best time for us to buy a house as large amounts of money will be crossing the border down to us, it does worry me a little. It's best for Canada's economy for our Loonie to be slightly under the Greenback, because that is when we're strongest.