Portfolio manager Axel Merk cautions about increased volatility in forex markets in Canada's "Financial Post".

"Axel Merk, San Francisco-based portfolio manager of the Merk Hard Currency Fund, has been a Canadian dollar booster since last October when other investors jumped ship following the federal government's decision to tax income trusts.

Mr. Merk expects the loonie to continue appreciating over the long term, thanks to strong energy prices and a solid domestic economy.

But Mr. Merk does acknowledge there will be volatility along the way."