Canadians Find Better Bargains in US

A stack of Canadian dollars, also called loonies, and U.S. dollar bills are seen on Thursday, Sept. 20, 2007 in Montreal, Que. The Canadian dollar moved decisively above 99 U.S. cents, flirting with one-to-one parity with the American dollar for the first time since November 1976. (AP Photo/Ryan Remiorz, The Canadian Press) (Ryan Remiorz - AP)

TORONTO -- Canadians are expressing pride in their economy but might be more inclined to go on shopping sprees in the U.S. after the Canadian dollar reached parity with the U.S. dollar for the first time since 1976.

Thanks to a sinking U.S. dollar and soaring commodities prices that benefit oil-rich Canada, the "loonie" _ named for the Canadian bird depicted on the one-dollar coin _ could be exchanged 1-for-1 with the greenback Thursday.

"It makes me feel very proud. It's a signal that our economy is doing well," said Toronto freelance writer Ayah McKhail. "Everywhere you go in the world, the American dollar is just seen as the strongest one (currency). So to feel that, as a Canadian, our dollar is finally there, it's very exciting."

The U.S. currency also plummeted to a new low Thursday against the 13-nation euro, which traded above $1.40 for the first time since it was introduced in 1999.

What's good for Canadian consumers and U.S. exporters, however, isn't such a boon to U.S. shoppers, who will find it more expensive to travel to Canada and to buy goods from the nation's largest trading partner.

That's a condition being repeated all around the globe as the dollar tumbles against a slew of currencies, including the euro, the pound and even the Indian rupee.

Its decline means Americans will pay more for imports and trips to Paris, Rome, Bangalore and Toronto. It also may drive overseas demand for U.S. goods and help raise profits at U.S. multinational corporations.

A lower U.S. dollar diminishes the spending power of American tourists while attracting foreign visitors who seek cheaper accommodations and shopping.

Canadians will be making more cross-border shopping trips to the U.S. to buy clothes, shoes and electronic gear. Most goods in Canada haven't been reduced yet to reflect the rising Canadian dollar.

"It's going to take some time before it trickles down to us," said Linda An, a Toronto shopper. "Shopping, especially for big ticket items, is great now in the U.S."

Daina Jefferies planned to take advantage of weaker American dollar Thursday, exiting Macy's at the Walden Galleria Mall in the Buffalo, N.Y., suburb of Cheektowaga, about 10 miles from the Canadian border.

"I just bought the same things I bought last week in Toronto for half the price," she said, adding a couple of bags to a collection already in the back of her car. "I'm going to go home and return them. I knew I was coming so I thought I wouldn't take the tags off. Now there's no way I'm keeping it because it's twice as expensive."