What’s more, the improvement in our basic economic foundations puts us in a better position than before to withstand the present adversity. In addition to pressure from the worldwide strength of the US dollar, some of the downward movement in the Canadian dollar over the past year was a reflection of the impact of lower commodity prices on our economic well-being.
However, by early August, it appeared that investors were exaggerating the importance of these effects and losing sight of the overall positive fundamentals in our economy. The Bank intervened, buying Canadian dollars, to encourage market participants to pause and reassess their views of the Canadian economy.