Loonie closes in on parity as Canadians and firms look to hedge bets

The high-flying loonie renewed its flight towards parity Monday, forcing firms and individuals to adjust to what many believe will become a new normal in the relative value of the two currencies.

Boosted by cycle-high prices for oil and commodities, the loonie soared to within a whisker of parity Monday, reaching as high as 99.87 cents US before closing at 99.72.

The currency has been flirting with par for more than a month, and economists believe it is now only a matter of time before the psychologically important barrier is breached. (more)