As well, the U.S. dollar has fallen substantially, adding to the recent weakness in goods prices in Canada. The average value of the Canadian dollar in terms of the U.S. currency in recent months represents a sharp increase from 69 cents in April.
Clearly, the appreciation of the Canadian dollar is an important factor that we at the Bank are considering carefully as we evaluate the economic situation and the risks attached to our outlook. At the same time, we continue to assess other developments, notably a somewhat stronger-thanexpected recovery in world demand. 51  Dodge (1998, 2002b).