As follows is a link to today’s news about the recent decline in the Canadian Dollar.

http://www.bloomberg.com/news/2013-01-25/canadian-dollar-falls-to-6-month-low-before-price-data.html

By now, it should surprise no one here that the markets employ reverse reasoning.
According to how I read the explanation in the news report, the decline is because
inflation is trending way below expectations.

Therefore, because left alone, the underlying economic fundamentals would greatly
strengthen the CAD, the figuring is the government is going to be forced to step in
and take firm measures to weaken it—in other words, subtraction by addition.