Canadian dollar is par with the US $

[tonyvdb]

For the first time since 1976 the Canadian dollar has reached par with the US dollar. at last check it was over 99.54 cents on the US dollar and rising.
Now is defiantly the time to buy things particularly electronics from the US for us Canadians.
Annalists are saying that as long as the Canadian economy remains strong (no signs of slowing down at this time) the dollar may gain ground even farther topping out at 5 to 10 cents more by the end of the year.

[Sonnie]

I don't really understand the Canadian dollar vs the US dollar. I've seen people mention that what cost $100 in the US would cost more in Canada. How does all this work anyway?

[tonyvdb]

Our dollar is no different than any other curancy as it is fully independent and rides its own market. The Toronto stock exchange (TSE) just like the New York stock exchange as well as outside markets dictate where the dollar sits as far as value.
The Canadian dollar has gained strength due to a number of factors one being the downturn of the US markets as of late. US Intrest rates being lowered have also given strength to the Canadian dollar as inverters dont like the fears that the US market is on the verge of a recession.
The Canadian dollar does ride on the US dollar at times but lately this is not the case as the jobless rate is at an all time low in Canada and over all the economy is the strongest its been in at least 25 years and is showing no signs of slowing down.
The down fall is that housing prices particularly in Alberta have gone up more than 200% An average 3 bedroom house here in Edmonton has gone from below $200,000 in 2001 to over $375,000 in 2007.
So the bottom line is that now I can go and buy something in the US and our dollar is worth just as much as the US dollar. Where as before I had to pay out 25cents more for every one dollar Canadian I spent in the US.

[Mike P.]

Simplified, it's based on the strength of the currency in the exchange market, which is constantly fluctuating. Many economic factors determine whether the currency from a specific country is strong or weak. I can remember a 30 cent difference between the American and Canadian currencies. An American comes to Canada with a 100 dollars and buys 130 dollars worth of goods. A Canadian goes to the States with 100 dollars and buys 70 dollars worth of goods. Recently both currencies are closer together in value then thet have been in the past 30 years.