Second, the equity market turbulence was triggered by a reassessment of the outlook for US inflation and monetary policy. In particular, there was evidence of stronger wages growth and a prospect of rising inflation. It would be appropriate and welcome in that case to see a tightening in financial conditions.
The exchange rate is a key macro-economic variable. It shapes a country’s balance of payments and engagement with the rest of the world. It affects a country’s export competiveness, of course in conjunction with other factors and its income and employment to  2  BIS central bankers’ speeches  the extent that export sector is important for the economy.