Conclusion  As much as exchange rate movements are the natural result of policies aimed at achieving sound and legitimate domestic targets, such as price stability, and as long as other central banks are not constrained in their ability to take offsetting actions, there is no reason for concern.
Further, prudent monetary policy has helped safeguard non-inflationary growth and financial stability, creating a predictable environment for growth in consumption and investment, thus fueling the economy’s momentum. Indeed, the underlying story of the economy’s sound growth prospects remains intact. Policy prescriptions: how did we get here?