Thread: Canadian Dollar now on par with US dollar.

Did you all see where Canada's dollar is now on par with the US dollar? Mexico's peso is pretty much stable with the dollar and has been since 1995. It will go up or down a few pesos but not much. Why not? Could this be because things are being paved for the Amero? One currency for all three nations? Ecuador and Panama already use the dollar as does El Salvador. What is next?

I think this will hurt Canada this equal US dollar Canadian dollar. Why? 5 to 10 years ago the Canadian dollar was worth like .55 cents to the US dollar. Many US companies like GM invested in Canada because of this exchange rate and the cheaper costs with socialized medicine. Take away this favorable exchange rate and I think investment will dry up in Canada.

I like Canada for it is a nation that takes care of its people. I hate Mexico because they do not! Canada yes! Mexico no! My opinion.

I see stability in the three currency's because I see the Amero coming. Mexico wins and the US and Canada lose.

The dollar has fallen also against the Indian rupee, to the extent that the economic equation of offshore outsourcing is being changed in our favor. Before, the taunt was, 'You better give us all the work visas we want, or else we will take the jobs overseas" (which they were doing anyway). It will also expose those foreign workers who brag that they got our jobs away from us because they were smarter and better. It takes a while for a juggernaut economy like ours to change course, but soon the truth will be apparent.

Have you seen how far the dollar has fallen against the euro? When it started a few years ago, one euro cost us .87 today in order to buy one euro, you need to cough up 1.41

Originally Posted by cayla99

Have you seen how far the dollar has fallen against the euro? When it started a few years ago, one euro cost us .87 today in order to buy one euro, you need to cough up 1.41

You have to wonder why...(sarcasem)
It is all bank manipulation any well educated five year old can tell you that .

The US Dollar took its biggest drop in the wake of the Wall Street scandals. No lie. Foreign (and other) investors became scared that the US stock market was not safe. John Snow favored continuing weakening of the dollar in order to bolster US exports. The most recent factors pushing it lower have been the Fed rate cuts, Last year the Fed was boosting its rates up. But fear of a recession has caused those to go back down ( in hopes of stimulating business borrowing), thus weakening the US dollar. The good news is that other countries are now being put in the same position to stave off recession.

Some people say it goes in cycles and we are just now nearing the bottom of it. Hope they're right: I did see their chart.

Welcome to Alipac.us Manjar.

Rawhide!

Our enormous debt is not helping things either.

One article I read a while ago stated the Europeans do not hold the dollar as standard anymore, but it is still highly regarded.

We owe, we owe, its off to work we go....but gees, can't we get the freeloaders off of our backs......go home, use your own countries services.......go home, go home, we don't love you anymore!

Can Indian IT cos retain cost advantage?


http://www.rediff.com/money/2007/sep/26it.htm

Those companies are in a tough spot right now. First, for the government to take measures to keep the rupee cheaper, imports will stay more expensive than they would if the rupee rose. This hits far more people than are benefitted by the Indian IT industry. Besides, the factors pushing the rupee up are stronger than anything the RBI can do over the long run. It's like trying to keep your driveway shovelled in a blizzard.

They can try raising their prices, but their main competitive tactic has always been price. How can they claim to go on providing a 70% cost reduction when they almost never do that now? Raising prices will expose them to competition from farmsourcing and local workers who are willing to settle for a lot less than they wanted back in 1999. We are hearing a lot now about American companies renegotiating and putting established contracts out for re-bid.

Some are trying to hire less experienced, less expensive Indian employees. But that could backfire. We have a saying, you get what you pay for, and while some young talent will ramp up quickly, they will then be vulnerable to job hopping which is already an epidemic and has been over there for years.

The rise of the rupee seems to have hit everyone by surprise. Much of the gloating over there and doomsaying over here was predicated on a constant exchange rate.

Being in the IT industry myself, I never thought that the IT outsourcing made all that much sense, with the language/accent barrier and all. Going to India seemed to be the panacea for the corporate raiders, though- the people over there all know IT inside and out, and they work for cheap! Now, in talking to some of my int'l friends, I'm hearing that many of the application development teams in India are outsourcing THEIR jobs- to China, and to Russia. They have found that they can still honor their original contract commitment by farming their work out to even lower bidders, namely China and Russia. IT in India is in decline, more and more people over there are rejecting the idea of going into IT altogether, instead focusing their studies on fields such as medicine and banking. Dell recently started pulling their support facilities out of India, as did AT&T. Not just cost/value ratio, but also due to complaints from corporate America about time wasted due to the first-level support doing nothing more than reading scripts, and also complaints that the language/accent barrier was getting too hard to handle. People don't want to take the time to try to understand someone whose native language is not English. My first job in IT was outsourced to India, luckily, I found a better job right away. But it does seem to be coming full-circle now, with the rise of the rupee and the precipitous drop in the dollar. My wages were frozen for the past 6 years, finally got a raise this year for the first time since I've been in this job.