Productivity is an issue for Canadian firms as they have not been improving at a sufficient rate over the last 20 years as they have been able to use the "weak Canadian dollar" as a strength or a crutch. Granted productivity improvements do not occur over night, however with the rapid rise in the CAD, those firms that can stick it out and improve productivity will be better off and more competitive with the US, and those that can't ... well that is life, the strong survive.

As for the Bank of Canada intervening, well they will not do so directly as Dodge continually states. Interest rates do have an impact on the dollar but the driver for changing the Bank of Canada rate is inflation not the CAD/USD exchange rate. Dodge will not change rates on Oct 15 because he was burned when he reacted to quickly at the beginning of the year. He may lower 25 bp on Dec 2 but not in response to the CAD, by the way this is already partially priced into the markets.

I feel for those that are being stung by the rapid rise but markets can be fickle at times, especially the currency markets. It is a price we pay for having a somewhat "free" market.

Also, if the CAD was called something else other than dollar, this discussion would be slightly different, many people wan the CAD to be par with the USD, because they are both dollars - you never hear this in countries that do not use a dollar named currency.