Canadian consumers stand to benefit as they face the prospect of a holiday shopping season with their currency at more or less equal value to the U.S. dollar. For more than a week, the Canadian dollar has been periodically fluctuating to and beyond parity with the U.S. dollar. It closed at exactly $1 U.S. Wednesday, and slipped somewhat on Thursday. Nonetheless, many economists feel the loonie is poised to stay neck and neck with the U.S. dollar at least until the new year, and perhaps beyond that. The dollar hovered near 95 cents U.S. during November and December of last year. At this time in 2008, the loonie moved within a range of about 75 to 85 cents U.S.. It's been since 2007 that Canadians had the option of using a near-parity Canadian dollar to stock up on goods during a Christmas shopping season. It went beyond $1.10 U.S. in early November that year and fluctuated above or close to par well into 2008. When the Canadian dollar rises to high levels, it's always a mixed bag in terms of who benefits and who gets hurt. But from the consumer's point of view, it's mostly a winning proposition, said Douglas Porter, deputy chief economist with BMO Capital Markets. "Generally speaking, from a stronger currency, consumers win and producers lose," he said. Canadian makers of goods who sell to international markets are either undercut in price by producers in cheaper-currency locations, or forced to lower their prices to stay competitive. However, consumers can benefit as imported goods become cheaper, and hopefully reflected in ticket prices on store shelves, Porter said. If not, shoppers can simply take their mighty Canadian dollar straight to the U.S., where they may find better prices. "I think that there is the potential for the currency to trigger another wave of comparison shopping and, likely as a result, some additional cross-border shopping as well," Porter said. Betsey Bonvissuto, marketing director for the Boulevard Mall in Amherst, N.Y. — across the border from southern Ontario's Niagara Region — said the high loonie has brought in a notable increase in Canadian shoppers lately, and that's expected to continue through the holiday season. "There's no doubt in our minds that the dollar being at par directly correlates to traffic and sales for our shopping centre," she said. Bonvissuto said there's been a notable increase in Canadian licence plates in the parking lot, and the mall's guest-services desk is dealing with more people from Canada. Mark Beazley, spokesman for the Retail Council of Canada, said there is concern among retailers as to what the exchange rate will mean for them this holiday season. Ultimately, he said, it will put more pressure on them to make shopping at home a positive experience. In an email, he said that "Canadians have shown time and time again that they will vote with their wallets. If they are not satisfied, they will shop elsewhere." While Canadian retailers will be "price competitive" in an effort to maintain their market share, Beazley said there are limits to how low prices can go. He explained that goods on store shelves are often purchased many months in advance at prices that don't reflect current exchange rates. A high loonie also creates an opportune time for Canadians to travel. Air Canada spokesman Peter Fitzpatrick said the airline's traffic has been up "significantly" recently compared to last year, though he could not say how much of that is a result of the dollar's strength. Still, he said international travel does tend to increase when the loonie is at elevated levels. BMO's Porter added that Canadians can benefit from the higher Canadian dollar in the form of lower interest rates. He explained that as economic growth is slowed because of the dollar's effect on exports, the Bank of Canada becomes more likely to refrain from raising its rates; that keeps commercial banks in check when it comes to raising their mortgage or lending rates.

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