BOC's Macklem: Most of the Canadian dollar's rise is a result of USD weakness

Bank of Canada Governor Tiff Macklem has said that most of the recent appreciation of the Canadian dollar is mostly the result of the American dollar's weakness. On the other hand, Macklem has added that there is risk of further C$ gains that could present downside risks to the BOC's economic assessment. On the margin, CAD's strength is weighing on exports. 

USD/CAD continues trading below 1.2650 but off the low of 1.2606 hit when the BOC announced its rate decision. The primary upward driver of the loonie is the BOC's upgrade of its growth forecasts. 

Reporters asked Macklem if the BOC considered a rate cut, and refused to answer. The current rate is 0.25%.