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What Will Happen to the U.S. Dollar?

Canadian dollar surges to highest level since 1977:
It ended the day at 91.79 cents U.S., the loonie’s highest level since Oct. 11, 1977.

This made me think back to 1998-2001, when the U.S. dollar was worth CAD$1.45, then $1.50 and briefly even CAD$1.60. It seemed to be in a permanent uptrend. At the time we had about $20,000 of American money and @ $1.50 exchange rate that little pile was worth CAD$30,000.

Around 2001-2002 the current downtrend began and I got worried about US$ and just wasn’t sure what to do with the money. So I asked a friend of mine – an institutional broker who’s given me good money advice in the past – about what we should do with it. He told me to convert US$ into Euros. I believed him.

A Euro was worth about US$0.90. Converting to Euros meant either opening up a bank account in Europe or storing physical money in a storage box. That seemed like sooo much trouble. In addition, my husband was sure that the Euro wouldn’t last. See, he doesn’t believe in a unified Europe. That’s a topic for a private conversation or possibly a separate post, but the point is – we never exchanged our U.S. dollars into Euros. It was like: “a lot of trouble for what?” who knew that it would all happen the way it did. “Hindsight 20/20” and all that jazz. (2 cliches in one sentence, try beating that)

If I had followed my friend’s advice, today we’d have approximately 22,000 Euros, or $32,705 Canadian dollars at the current exchange rate. Instead, US$20,000 is worth approximately $22,000 Canadian. So we lost about $8,000 before inflation. Not to mention that the taxes on our US$ income were paid at a higher exchange rate. Laziness is expensive.

We didn’t literally lose that money because over the years we bought stuff from the States on a US$ credit card. We spent about $7,500 and still have about $13,000 left.

And I’m still not sure what to do! I didn’t listen to my friend then, but I’m listening to all and any opinions now. What should we do with our U.S. money?

Will the dollar go back up when the next president is elected? Or should we continue boosting the American economy and slowly get rid of the US$?