The Canadian dollar hit parity with the greenback on Thursday for the first time in more than 30 years as the U.S. currency extended its trend downward.
One U.S. dollar would recently buy C$1.001, down from C$1.0153 late Wednesday. The Canadian dollar was last trading one-for-one with the dollar in 1976, during the last days of the Ford administration.
"The momentum is still red-hot behind the Canadian dollar," says Derek Burleton, senior economist at TD Economics in Toronto.
As a resource-rich economy, Canada benefits from the elevated price levels for commodities such as oil and base metals, he explains. "Right now there is nothing to stop
the Canadian dollar going even higher," he adds.
CurrencyShares Canadian Dollar Trust
, which tracks the value of the Canadian dollar, was rallying 1.4%, in line with the spot market action.
Elsewhere in currencies, the euro was soaring to yet another all-time high against the U.S. dollar, recently trading at $ 1.4087, up from $1.3962 a day earlier.
News out of the U.K. speculating that the oil-rich nation of Saudi Arabia may cut the currency peg to the U.S. dollar put the greenback under pressure. Earlier this year neighboring Kuwait did decide to do the same.
Currently, the dollar remains as the primary foreign-exchange asset held by world central banks as a reserve. But moves such as those by Kuwait and increasing dissatisfaction with U.S. fiscal policy may mean the euro could soon take that role.
CurrencyShares Euro Trust
, which moves in line with the value of the euro, was rallying 1%.
In other foreign-exchange action, the dollar was losing ground on the Japanese yen. One dollar was buying 114.38 yen, down from 116.08 yen previously.
CurrencyShares Japanese Yen Trust
was slipping 1.5% in recent market activity.