The Hemisphere: Dollar Drop

The Canadian dollar, which rose in value above the U.S. dollar eight months ago and reached a high of $1.04 (U.S.) in August, dropped back last week. It was quoted as low as $1.01 in Toronto, and at some U.S. border points the two dollars were traded even, although a customer still had to put up $1.02 to buy a Canadian dollar at a U.S. bank. Reason for the drop: 1) recent withdrawal of U.S. investments for profit-taking, 2) an increased demand for U.S. goods, which boosted Canada's imports above, exports in September, and 3) the U.S. election. "All the Republican talk of economy," said one Canadian observer, "brought back confidence. Withdrawal of securities for profit reasons has been going on for some time . . . but the election undoubtedly speeded it up."