'Canada’s dollar is turning into a haven for foreign-exchange investors shunning European turmoil and seeking the safety of the U.S. without the budget deficits or political gridlock.The currency, which underperformed nine major peers in Bloomberg Correlation-Weighted Indexes in the first eight months of the year, has rebounded, topping all except the U.S. dollar and yen since. As the U.S. struggles with a $1.3 trillion budget shortfall, AAA rated Canada may use rising commodity revenue and spending cuts to balance the budget within five years.''The loonie, known for the aquatic bird’s image on the dollar coin, will appreciate to parity with the greenback by the end of next year, Watt said. Toronto-Dominion Bank, the country’s second-largest lender, sees it rallying to 95 cents per U.S. dollar by then after weakening to C$1.09 in the first quarter. Bank of Nova Scotia, the third-largest, predicts it will strengthen to 98 cents.''Canada’s economy is growing at 3 percent, twice the average pace of Group of Seven and euro-area nations. Finance Minister Jim Flaherty pledged his Conservative Party government will eliminate the budget deficit, forecast at C$31 billion this fiscal year, by 2015. The U.S. deficit is $1.3 trillion, or 9.6 percent of output. Canada’s budget deficit is 4.3 percent of output.Banks in Canada were named the soundest for a fourth year by the World Economic Forum. RBC, TD, Scotia and CIBC reported last week that fourth-quarter profit rose an average 43 percent. The companies didn’t require bailouts during the 2008 financial crisis and weren’t among the global banks downgraded by Standard & Poor’s on Nov. 29.' http://www.bloomberg.com/news/2011-12-05/loonie-joins-dollar...-------------------GG Home Fool
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