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A Canadian dollar, or loonies, sits on an American dollar. The Canadian dollar has hit a seven-week high against its American counterpart as oil prices continue to rise amid signs of global economic improvement. THE CANADIAN PRESS/Paul Chiasson

Tourist-driven businesses worry about Loonie parity

Jeffrey Lansing Mar 10, 2010 16:26:23 PM
A new report suggests the Loonie will rise above parity with the US Dollar this summer and that has some local businesses worried.

"It makes it less attractive for people, specifically from the US coming into Canada," says Jeff Farwell, owner of the restaurant and boat tour provider Murphy's on the Water.  

However, Farwell says he won't be changing his marketing strategy.

"Right now it's pretty close to par as it is and I don't know how much further it will go beyond par," says Farwell. "Within that 10 per cent fluctuation -- will that make that much of a difference on travel? I'm not sure yet."

Kurt Bulger expects an impact. He owns the retail shop Jennifer's of Nova Scotia.

"It's going to hit us a bit," says Bulger. "It did last time when it went to parity,"  

He's less worried about people going online to buy things from the US than he is about tourists spending less when they're here.

"It's never a good news when the costs are going up, whether you're in control of them or not," says Bulger. "You grin and bear it."

CIBC World Markets says higher interest rates make investments more attractive which will raise demand for the Loonie.

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