- The Governor of the Bank of Canada, Stephen Poloz, stated on Thursday that the depreciation of the Canadian dollar is the ‘icing on the cake’ for struggling exports, and said monetary stimulus is needed in order to claw back the country’s economic health. Recent strength of the U.S dollar has seen its Canadian counterpart decline. The Bank of Canada estimates that the economy will depend more heavily on exports to spur on growth, taking over from indebted consumers. Looking at other factors that may hinder the Canadian recovery, the recent depreciation in value of crude oil could potentially slow output growth next year.
- The Japanese yen also suffered at the hands of a strong US dollar on Thursday as upbeat growth data – along with the Federal Reserve’s decision on Wednesday to draw an end to quantitative easing – saw the greenback continue what has been a positive week.
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