Loonie making a spectacle of itself?*

This just in from the Department Of Pointing Out The Obvious:

Yahoo!: Government says C$ rise may be speculative

OTTAWA (Reuters) - The Canadian dollar's recent surge may be based more on speculation than on economic fundamentals, the Canadiangovernment said on Tuesday.
"Recent increases of the dollar may reflect generalized U.S.-dollar weakness and speculative sentiment toward the Canadian dollar rather than domestic fundamentals," Finance Minister Jim Flaherty said in his fiscal and economic update.
That is the sort of language the Bank of Canada has recently used to suggest that, if the currency did not retreat somewhat, it might have to step in to cut interest rates.

A big tip of the hat to Jim, for parroting what Bank of Canada Governor David Dodge was just saying last week. Thanks for that.

In the meantime, it is what it is, so lets's make hay while the sun shines.

* I tried to come up with a pun combining "spectacle" and "speculation" and failed miserably.

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