Canadians Invade US as Loonie Climbs

Exchange rate nears all-time high, sparking spending—and gloating
By Jane Yager,  Newser Staff
Posted Oct 29, 2007 11:47 AM CDT
A Canadian flag flies beside an American flag outside a condo complex at Old Orchard Beach, Maine, on Thursday, July 12, 2007. The seven-mile long beach has long been a haven for Canadian tourists. Business...   (Associated Press)
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(Newser) – The commodity-heavy Canadian loonie rose above US$1.04 this morning—just short of its 1957 all-time high of $1.06—on news that Mexico would cut oil production 20%, reports the National Post. Now that the currency tables have turned, Canadian shoppers and vacationers couldn't be happier, the Guardian reports. "Everything is just so cheap for us," gushed one.

Newly flush Canadians "are really enjoying themselves," spending freely at border-town malls, vacationing in the US, and snapping up second homes in Florida. The shift isn't all bad for the US: Tourism and retail outlets are flourishing while their Canadian counterparts languish. "They should be spending that money here and then running back across that border," said a New York tourism board member.