The Canadian Press

A Canadian loonie and coins lay on an American dollar in Quebec City on Nov. 8 2007. (Jacques Boissinot / THE CANADIAN PRESS)

TORONTO — A resurgent loonie is welcome for some Canadians -- and dreaded by others.

But an economist says it's doubtful the Canadian economy can live with a currency on par with the U.S. dollar on an extended basis.

CIBC chief economist Avery Shenfeld says at least not until commodity prices are a lot higher than they are today.

He points out some manufacturers and exporters have been wiped out because they had a tough time competing with a strong exchange rate.

While few manufacturers will directly blame the value of the loonie for drastic job cuts, it's often a major deciding factor.

Many international corporations will look at forecasts for the dollar when they decide which plants to close.

Others will weigh the currency's effect on profits when they decide whether to set up headquarters in Canada.

The loonie hit a 20-month high yesterday on an optimistic jobs report, briefly tapping 98.47 cents U.S.

The currency later closed at 98.20 cents U-S, up 57-100ths of a cent.