Exchange Rate Now!

Besides the physical proximity, there is also something between the United States and Canada that is near to each other - the currencies of both Canada and the United States trade at near parity. Currently, the Canadian Dollar (CAD, also informally known as the “Loonie”) is trading at 92.78 US. Cents (or 1 US Dollar compared to 1.078 Canadian Dollar). At this level, this is one of the best exchange rate for the Canadian Dollar against the US dollar (USD) since Oct 2008.

In fact, against the U.S. dollar in July 2009, Canada is THE best performer amongst the 16 most-active currencies tracked by Bloomberg, gaining a whooping 7.6 percent. This means a 7.6% increase in purchasing power for Canadian tourist travelling to United States!

The Canadian Dollar forecast to be more expensive that the US Dollar in the medium term due to several factors and trend:

1. A greater risk appetite resulting from the recovery of the global financial crisis helped bolster the commodity-linked Canadian Dollar, where raw materials account for more than half of the country’s export revenue (more…)

Known informally in the forex market as the “Swissy”, the US dollar (USD) / Swiss Franc (CHF) is one of the most traded pair of currency in the world. What makes this pair interesting is the comparison ratio of this pair. The US Dollar and the Swiss Franc are trading at near parity. Although the Swiss Franc (CHF) exchange rate to the US Dollar (USD) is 1.19 in 12 Mar 2009 @ Swiss Franc = 1 US Dollar, this exchange rate has came down to the current level of 1.05 Swiss Franc = 1 US Dollar.

Of course, trading at this level begs the question on whether the Swiss Franc will eventually be more expensive than the US Dollar, just like what happened to the Euro. This is a difficult question to forecast, at least in the immediate future. With the global financial crisis just abating, key indicators from both countries will determine the trading trend in the forex market. From Switzerland, the UBS consumption indicator will be the one to watch (more…)

With South Africa hosting the 2010 World Cup, it is no doubt in the travel plan of most tourist in football obsessed United Kingdom (which includes England, Scotland and Ireland). In fact, South Africa is already experiencing a boom in tourists from the United Kingdom now, one year before the World Cup even starts!

Besides the World Cup, there is another factor which may account for the rise in tourist numbers – The favourable exchange rate. The South African Rand is now trading at about 12 Rand to 1 Sterling Pound. This exchange rate is currently more favourable towards the Sterling Pounds compared to other major currencies like the Euro and US Dollar.

Some worries that the South African Rand will move to a downtrend against major global currencies (which include the Sterling Pound) once the World Cup concludes in 2010 (more…)