Petrol Dollar = Canadian Dollar

Reported in the Harris Nesbitt (Bank of Montreal) Andrew Busch update for Aug 22nd:

“…Now there is a compelling case to be made that energy is a key driver of the loonie [Canadian Dollar]…. A rough and ready estimate suggests that the currency rises by five cents (US) for every US$10/barrel rise in oil prices. By this admittedly “crude” approximation, $100 oil would be consistent with a Canadian dollar at par-and neither forecast looks particularly outlandish now…”