Canadian dollar and business outlook

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The Canadian dollar was slightly softer Tuesday morning, as currency traders reacted to the latest inflation news out of the United States.

At 8:45 a.m. CDT the Canadian dollar was trading at US$0.7390 or US$1=C$1.3532, which compares with Monday’s close of US$0.7412 or US$1=C$1.3491.

U.S. inflation was up by 0.4 per cent in February, with the consumer price index up by 3.2 per cent on an annual basis. Average pre-report expectations had been for the annual rate to hold steady at 3.1 per cent, with the larger than expected reading seen a sign that the U.S. Federal Reserve may be slower to cut interest rates going forward.

Crude oil was slightly softer in early trade, with West Texas Intermediate crude oil down by 0.30 per cent at US$77.70 per barrel.

The TSX was weaker, losing 37.78 points at 8:45 CDT to trade at 21,736.44 points.