'Loonie' Reaches Parity, U.S. Dollar Continues to Slide vs. Euro
Bottom Line: The declining U.S. Dollar will help American action, stock, and barrel-makers export more products. However, key imported components, such as Lapua and Norma brass, will become more expensive in the months ahead.
Today, the Canadian dollar (known as the “Loonie”) reached virtual 1:1 parity with the U.S. Dollar. This will mark the first time since 1976 that Canadian currency has traded on equal terms with the American Greenback. As of today, one Canadian dollar was worth 0.9985 U.S. Dollars. The steady rise in crude oil prices, combined with the Fed’s recent interest rate cut, contributed to the slump of the U.S. Dollar.
Meanwhile the U.S. Dollar slipped to a record low against the Euro. One Euro now buys 1.4073 U.S. Dollars. The Euro, since it was first adopted, has gained over 50% in value against the U.S. Dollar.
The implication for the shooting sports is both positive and negative. First, U.S.-made goods, such as stocks, actions, and barrels, will be cheaper for Canadians and Europeans to buy. That should be a plus for companies like Krieger (barrels) and BAT Machine (actions). The folks at Kelbly’s and Sinclair Int’l have told us that their export sales have increased dramatically over the last three years, due in large part to the stronger Euro making American goods more of a bargain.
For American shooters, the negative aspect of the sinking U.S. Dollar is that the imported products we love, including Lapua and Norma brass, Zeiss Optics, and Robertson Composites stocks, will probably go up in price in the months ahead. So, if you are thinking of laying in a supply of Lapua brass, now is the time to buy. Experts predict that that U.S. Dollar will continue its slide against the Euro for the next 2-3 years.
