Since Tiff Macklem became the chair of the central bank of Canada in June last year, I thought he would pursue a modest strong loonie. Tiff has a similar governing philosophy to Marc Carney. My prediction (see the first attached page) has been proved correct. Lonnie has since strengthened almost uniformly from 71 to 83 U. S. cents, a 17% jump (refer to the second attached page). A strong loonie during this period increased the purchasing power for Canadians, suppressed inflations in Canada and hence created more room for monetary policies for the Bank of Canada.
Of course, the strong Lonnie is attributed not just by the central bank, other factors such as weak U. S. dollar, strong demand of Canadian resources such as lumber etc, all collectively support that trend.
