BIG WAVE
09-13-2006, 10:45 PM
SINGAPORE (Reuters) - The Canadian dollar, trading at around 89 U.S. cents, could appreciate by a "substantial" amount if global current account imbalances adjust in a disorderly way, the International Monetary Fund said on Thursday.
The Canadian economy continues to perform robustly, the IMF said in a twice-yearly snapshot of the world economy, but it warned that another risk would be the possibility of a sharper-than-expected U.S. slowdown.
More than $1 billion in goods are traded between the neighbors each day, making it the world's biggest bilateral trade flow. But the Canadian dollar's rise in the past few years has curbed factory exports while the value of energy shipments has jumped.
The Canadian dollar has soared from an all-time low of just under 62 U.S. cents in January 2002. An internal note in March by the Bank of Canada said the long-term equilibrium value is 91 U.S. cents.
http://ca.today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-09-14T021915Z_01_SP183270_RTRIDST_0_BUSINESS-IMF-CANADA-COL.XML&archived=False
The Canadian economy continues to perform robustly, the IMF said in a twice-yearly snapshot of the world economy, but it warned that another risk would be the possibility of a sharper-than-expected U.S. slowdown.
More than $1 billion in goods are traded between the neighbors each day, making it the world's biggest bilateral trade flow. But the Canadian dollar's rise in the past few years has curbed factory exports while the value of energy shipments has jumped.
The Canadian dollar has soared from an all-time low of just under 62 U.S. cents in January 2002. An internal note in March by the Bank of Canada said the long-term equilibrium value is 91 U.S. cents.
http://ca.today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-09-14T021915Z_01_SP183270_RTRIDST_0_BUSINESS-IMF-CANADA-COL.XML&archived=False