As of this writing the CAD/USD is 1.0124, close to par. May be due to lower sales in the Canadian car market due to the perceived inequity in the prices! Our inflation is dropping, retail sales are down, Bank of Canada expected to lower prime rate by at least a 1/4 point and this is driving our currency value down. Not necessarily a bad thing considering our manufacturing sector is hurting, at least the ones that predominantly sell to the US.

http://www.rttnews.com/forex/currency_mkt.asp
11/21/2007 1:39:11 PM The US dollar inched closer to parity with its Canadian counterpart in Wednesday's mid-day dealing, rising to .9923. The dollar has snapped back versus the loonie since hitting a modern-era record low of .9056 earlier this month. The dollar has not been at par with the loonie since early October.

Statistics Canada released its report on Canadian retail sales in the month of September on Wednesday, showing that sales unexpectedly fell compared to the previous month due mainly to a decline in sales by new car dealers.

Yes!

So less Canadians are buying cars in Canada...

YES!

Well, hopefully this is just a correction looking for another correction, and that car manufacturer's take this to heart and lower prices significantly. Another potential cause has been that the GST is going to be lowered by 1% starting next year, but most car companies are giving people the 1% as a rebate anyway until next year.