Citigroup (NYSE:C) On Canadian Dollar

The Canadian dollar will regain parity with the U.S. dollar, according to Citigroup (NYSE:C), and should find support in the range of 1.0207 to 1.0225.

In a note to clients, Citigroup said in the short-term the Canadian dollar should reach 0.9931.

Last week's market turmoil brought the loonie down, but that won't last long, as the fundamentals are too strong to keep it at those levels.

The Canadian dollar is increasingly being thought of as a safe haven investment, as the economy of Canada remains strong, and they are positioned for a profitable and long run because of the natural resources available in the country, and the strong demand for those resources from China and other areas of the world, which will go on for many years.

The Canadian dollar will rise with the economic growth of the country, and with little or no sovereign debt issues, is being eyed by investors as an alternative to the U.S. dollar, along with gold.

Canadian Dollar Rebounds

The Canadian dollar has been down for a couple of weeks, but rebounded strong today as exports increased and the stock index surged. The loonie gained against 14 of the 16 major currencies today, as gold and oil prices posted gains.

Jeff Rubin, chief economist at CIBC World Markets said the Canadian dollar should increase in strength against the U.S. dollar, probably rising to 95.2 cents per U.S. dollar this year.

He added concerning the U.S. economic downturn that "The energy- and resource-rich Canadian economy will manage to sit out this U.S. recession."

As he said, all this is related to the increasing and long-term demand for commodities, which should keep Canada's economy strong for the next couple decades at least.