For the first time since November 1976, the U.S. dollar is worth as much as the Canadian loonie. The U.S. dollar’s recent decline against the Canadian dollar, euro and Indian rupee indicates that Americans could pay more for imports and traveling abroad, reports Jackie Farwell for the Associated Press. The recent leveling between the two currencies has caused the CurrencyShares Canadian Dollar Trust (FXC) to skyrocket. Currently, FXC is up 20.0% year-to-date.
The dollar’s drop is good news for American manufacturers because it makes U.S. exports more competitive. However, the decline is bad news for Americans buying imports to the U.S., as it will cause their prices to rise. International business workers are pleased with the news because the dollar’s record drop could mean higher profits overseas and increased demand for U.S. goods.
Read the disclosure, as Tom Lydon is a board member of Rydex Investments.