KEY POINTS:
When the New Zealand dollar rises exporters scream but when the Loonie, the Canadian dollar, takes flight Canadian retailers also hurt.
In September the Loonie, named after the loon, a bird depicted on Canada's one dollar coin, reached parity with the US dollar for the first time since
1976 and it has been high since because of the low US dollar and high oil prices.
As in New Zealand, a soaring currency is a problem for exporters because it cuts their returns in local currency terms.
But in Canada the rising currency also sets off a migration of shoppers because it is so easy for Canadians to shop across the border in the US on day trips. Three-quarters of Canadians live within 150km of the US border.
The rush of Canadian bargain hunters to the US is reaching epic proportions and shoppers from Europe are also flocking to the US to take advantage of the low US dollar.
The influx of shoppers swelled on Black Friday, the day after the US Thanks Giving holiday last week when US stores ran "doorcrasher sales" in the same way that stores in New Zealand run Boxing Day sales after Christmas.
Many stores opened as early as 4am. Black Friday is traditionally the day that US retailers' profits move into the black.
Even before this peak the Canadian media was reporting on the traffic problems at border crossings caused by day-tripping shoppers and a rise in online buys by Canadians on US sites.
Canadian commentators are imploring Canadians to "shop local" to support their own retailers and book stores are running full page advertisements attacking the perception that books are a lot cheaper in the US.
In October, Canada Post saw a 15 per cent increase in the volume of mail or parcels coming into Canada from the US in the previous year.
Canada is more exposed than most other countries to the impact of a weak US dollar, say economists. Bank of Canada senior deputy governor Paul Jenkins said the magnitude of the rise in the Canadian dollar was stronger than historical experience and that the weakening prospects for the US economy were affecting Canada.
The contrast between Canada and the US is seen in the property market.
In the US the talk is of foreclosures, falling house prices and the issue of whether the crisis in the sub-prime lending market will spread to the prime lending market.
In Vancouver the media reported on a continuation of "condo mania". A new tower block with 901 apartments built by a Chinese investor sold out in 30 hours this month.
About 545 units sold on the Saturday but the mania was reported to be dying down because no one slept on the street overnight to be in a position to buy when sales opened.
- NZPA
