Chart 5: The increase in the foreign exchange risk premium was the main factor behind the depreciation of the Canadian dollar https://www.bankofcanada.ca/?p=244080 10-year exchange risk premium 10-year expected path differentials Can$/US$ 0.000.000.00 -0.230.150.01 -0.230.150.01 -0.230.150.01 0.100.140.36 0.340.100.65 0.530.080.84 0.720.061.04 0.790.031.05 0.790.031.05 0.790.031.05 0.660.060.95 0.880.071.23 0.860.031.16 0.93-0.091.05 1.16-0.041.42 1.16-0.041.42 1.16-0.041.42 1.43-0.021.76 1.52-0.031.86 1.550.072.05 1.480.021.88 2.060.092.68 2.060.092.68 2.060.092.68 2.200.082.85 2.420.113.15 2.150.132.89 2.040.182.86 2.030.182.80 1.710.182.80 1.710.182.80 1.680.252.79 1.400.122.37 1.690.092.70 1.750.062.72 1.270.102.21 1.270.102.21 1.270.102.21 1.420.062.30 1.030.111.92 1.260.092.18 1.360.022.16 1.280.072.11 1.280.072.11 1.280.072.11 1.350.012.10 1.230.062.02 1.280.011.96 1.590.022.30 1.450.102.24 1.450.102.24 1.450.102.24 1.650.092.44 2.250.143.25 1.920.142.86 2.130.073.01 1.780.102.63 1.780.102.63 1.780.102.63 1.380.032.56 1.450.072.82 1.320.102.72 1.010.092.34 1.02-0.022.18 1.02-0.022.18 1.02-0.022.18 0.75-0.021.86 0.550.011.66 0.29-0.111.19 0.24-0.200.97 0.14-0.200.83 0.14-0.200.83 0.14-0.200.83 -0.10-0.130.58 0.24-0.350.73 0.40-0.370.90 0.18-0.390.58 0.15-0.390.55 0.15-0.390.55 0.15-0.390.55 -0.01-0.410.32 0.18-0.500.42 0.14-0.580.28 -0.03-0.530.15 -0.19-0.60-0.12 -0.19-0.60-0.12 -0.19-0.60-0.12 -0.09-0.63-0.10 -0.28-0.61-0.28 -0.14-0.66-0.21 -0.05-0.71-0.42 -0.07-0.74-0.53 -0.07-0.74-0.53 -0.07-0.74-0.53 0.09-0.67-0.19 0.51-0.640.37 -0.07-0.69-0.46 0.32-0.610.11 0.14-0.73-0.26 0.14-0.73-0.26 0.14-0.73-0.26 0.05-0.67-0.35 0.00-0.74-0.49 -0.51-0.59-0.88 -0.66-0.77-1.31 -0.86-0.75-1.54 -0.86-0.75-1.54 -0.86-0.75-1.54 -0.48-0.72-1.00 -0.31-0.61-0.58 -0.48-0.60-0.72 -0.74-0.43-0.71 -0.74-0.43-0.74 -0.74-0.43-0.74 -0.74-0.43-0.74 -0.81-0.42-0.79 -1.03-0.54-1.28 -1.00-0.47-1.12 -0.87-0.48-0.99 -0.69-0.58-0.93 -0.95-0.58-0.93 -0.95-0.58-0.93 -1.01-0.70-1.23 -1.16-0.68-1.38 -1.07-0.78-1.41 -0.79-0.79-1.06 -1.36-0.94-2.00 -1.36-0.94-2.00 -1.36-0.94-2.00 -1.44-0.97-2.12 -1.36-1.05-2.17 -1.34-0.95-2.02 -1.76-0.89-2.46 -1.75-0.95-2.56 -1.75-0.95-2.56 -1.75-0.95-2.56 -1.76-0.98-2.61 -2.11-1.00-3.09 -2.76-1.11-4.03 -2.63-1.01-3.70 -2.32-1.06-3.43 -2.32-1.06-3.43 -2.32-1.06-3.43 -2.21-1.17-3.50 -2.17-1.16-3.42 -2.29-1.13-3.56 -2.52-1.09-3.76 -2.35-1.23-3.79 -2.35-1.23-3.79 -2.35-1.23-3.79 -2.15-1.14-3.40 -2.86-1.20-3.60 -2.90-1.17-3.63 -3.02-1.17-3.73 -3.20-1.22-4.03 -3.20-1.22-4.03 -3.20-1.22-4.03 -2.50-1.23-3.24 -2.73-1.22-3.50 -2.87-1.15-3.54 -2.99-1.15-3.67 -3.10-1.21-3.86 -3.10-1.21-3.86 -3.10-1.21-3.86 -2.96-1.14-3.56 -2.95-1.04-3.36 -2.96-1.00-3.30 -3.15-1.08-3.67 -3.46-1.19-4.25 -3.46-1.19-4.25 -3.46-1.19-4.25 -2.43-1.22-3.09 -2.52-1.23-3.17 -2.84-1.24-3.56 -2.84-1.26-3.59 -2.53-1.30-3.30