exchange rates

[meow!]

We all know that the euro has been rising steadily against the US$ in the last couple of years. The two sides of the Atlantic have rather different economic cycles. What is strange (and this matters to those planning on Alaska cruises next Spring and Summer) is that the Canadian dollar has been the strongest currency in the whole world during the last eight months, indeed stronger than the euro and the Japanese yen put together. The C$ has gained some 35% against the US$ in the last year or so. Since Canada's economy depends mostly on the U.S., can those who are economists among you explain why is there such profound dichotomy across this "free trade" border? An Alaska cruise plus a week on land in Canada for a couple can easily cost $2,000 more because of this change in currency rates!

[jhannah]

Probably lots of factors, not the least of which is our humongous national debt and gargantuan trade deficit. We've outsourced quite a bit to foreign soil, and this helps bolster those economies. Yes, foreign travel is much more costly now than even 18 months ago. I never thought I'd purchase the Pound Sterling at the high rate I did recently for our trip to Great Britain next year ... but it's even worse now and will likely be two-to-one very shortly. At least I've shaved a few dollars off the cost of that trip. I'm hoping things will settle down and that the pendulum will begin going back the other way.