June 18 (Bloomberg) -- Bank of Canada Governor Mark Carney said he’s watching the Canadian dollar “closely,” the third time this month he’s expressed concern about the currency’s recent appreciation.

Asked if he would consider selling Canadian dollars to stem the rise, Carney told reporters today “intervention” won’t be effective without monetary policy that pushes the currency in the desired direction.

The higher dollar “does have potential to offset a number of the positive factors we’ve seen, so we’re watching it very closely,” Carney told reporters in Regina, Saskatchewan, following a speech.

“Intervention in and of itself, without policy action consistent with the direction of that intervention, is rarely effective in the long term,” Carney said. “But it is an option that always exists.”

The Canadian dollar weakened 0.1 percent to C$1.1327 per U.S. dollar at 4:20 p.m. in Toronto, from C$1.1318 yesterday. It earlier climbed as much as 0.7 percent.

A 15 percent gain for the Canadian dollar since March 9 is threatening to undermine the country’s already battered exporters.

Carney last voiced his concern to reporters June 11 in Montreal, describing the dollar’s rise as something that hasn’t happened in 50 years of floating exchange rates. The dollar has lost 3.2 percent since June 4 when the central bank first expressed concern the currency’s gains could choke the country’s recovery.

To contact the reporter on this story: Gene Laverty in Regina at glaverty@bloomberg.net.

Last Updated: June 18, 2009 16:52 EDT