The Globe and Mail reports in its Tuesday, Sept. 19, edition that a subtle warning from the Bank of Canada that it is tracking the surging Canadian dollar has taken some lift out of the currency. The Globe's Barrie McKenna writes that the dollar fell nearly a full cent Monday to 81.3 U.S. cents after deputy governor Timothy Lane told an audience in Saskatoon that the BOC is paying "close attention" to how the economy is responding to higher interest rates and the "stronger" currency. Mr. Lane's comments suggest the bank will be patient about raising its benchmark interest rate to a more normal level, analysts say. This is the BOC "signalling a more gradual pace of rate hikes," explains TD economist Brian DePratto. "It puts it more into focus that the dollar still matters for them." The rate now stands at 1 per cent, up from 0.5 per cent in early July. Responding to questions after his speech, Mr. Lane said bank officials are monitoring the impact of the higher dollar on exports and two interest-rate hikes on stretched Canadian borrowers. "That's what data dependent looks like," he said. "We're trying to understand how the economy is evolving, and therefore what degree of monetary policy is still appropriate."