Investing.com - Financial Markets Worldwide

UPDATE 1-Canada PM says weak Canada dollar brings challenges

Published 2015-12-16, 01:53 p/m
© Reuters. UPDATE 1-Canada PM says weak Canada dollar brings challenges

(Adds comments by prime minister, economist's reaction,
background)
OTTAWA, Dec 16 (Reuters) - Canadian Prime Minister Justin
Trudeau said on Wednesday that while it is a good thing that the
U.S. economy is recovering enough to face higher interest rates,
the weaker Canadian dollar that comes with a Fed hike brings its
own challenges.
"Obviously it's a good thing that our major trading partner,
upon whom so many jobs in Canada depend, are (sic) starting to
see a resurgence of their economy," Trudeau told reporters.
"There will be opportunities for our exporters to benefit
from it, but obviously we are always looking at the challenges
that a lower dollar will pose to Canadian producers and to the
Canadian economy in general."
The Canadian dollar is at an 11-1/2-year low against its
U.S. counterpart, partly because of a crash in the price of oil
and partly because of expectations that the Bank of Canada will
not be matching potential Fed rate hikes.
While Trudeau stressed the independence of the Bank of
Canada in setting monetary policy, BMO Chief Economist Doug
Porter said the prime minister was probably recognizing the fact
that there are winners and losers from a weaker currency.
"He doesn't want to fuel the fire by sounding like they are
openly welcoming a lower currency," Porter said.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.