Do you remember when the Canadian Dollar was sixty cents? Remember when the Canadian Dollar was not volatile and was jokingly called the Canadian Peso. Those were seemingly easier days for many of us that are involved in export or import businesses with the United States. With the Canadian Dollar holding near par and oil rising the opportunity go lower seems not possible in the first quarter of 2011.
Hedging currency has become one of the most important decisions on the farm. Much of your profitability is decided on how well you deal with the fluctuating dollar. Everyone has an opinion on the Canadian Dollar and why it will be 1.15 or 0.90 at any given time.
I spoke with David Watt, Senior Fixed Income and Currency Strategist with RBC Capital Markets about his Q1 and Q2 outlook for the Canadian dollar.
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