BoC's Lane: Lower Canadian dollar will help support the Canadian economy

In a speech titled 'Taking Precautions: The Canadian Approach to Foreign Reserves Management", the Bank of Canada Deputy Governor Timothy Lane said the combination of a temporary slowdown in Canadian economic growth and Fed rate hikes has been putting downward pressure on Canadian dollar. Lane further argued that the lower Canadian dollar will help support the Canadian economy through this period as the sharp CAD exchange rate movements have helped the economy to adjust to shocks previously.

Lane also said the BoC stands ready to intervene in markets if need be, notes it has not done so at any time through the "often turbulent" past two decades.