To hedge, or not to hedge?

The Canadian dollar used to be worth only US$0.67.

But the tables have now turned, says ETF Insight, ever since the Loonie broke through par and hit US$1.07 in 2007.

Though the exchange rate plummeted afterwards, it adds the rate steadily climbed back up over the following two years. And for the last three, it’s stayed above US$0.95 and held steady.

Read more on currency risk and ETF investing.

Also read:

Loonie’s race toward parity proves value of hedging

Is the Loonie overvalued?

Faceoff: Foreign exchange

Secondary currencies can reap returns

Hedging against nature

A fresh look at currency