Most of our purchases are in US $$, from my experience all I can say is, the dollar is so volatile, it’s a crap shoot, our hedging policy is to hedge 3-4 months in advance and that’s it. I’ve been to seminars where some ‘experts’ are forecasting Cdn$ to go as high as 1.05 by early summer, and again some other ‘expert’ says our dollar is really worth 0.85.
I don’t think the dollar will go higher than 1.05 as our Bank of Canada Governor and Flaherty will start talking down our dollar. My view is short term we will see a stronger dollar, but will probably weaken by end of the year and go below parity.