Canadian dollar and business outlook

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The Canadian dollar was weaker Tuesday morning as currency traders reacted to updated inflation data.

At 8:46 a.m. CDT the Canadian dollar was trading at US$0.7323 or US$1=C$1.3656, which compares with Friday’s close of US$0.7345 or US$1=C$1.3615. Canadian markets were closed Monday for Victoria Day.

Canada’s annual inflation rate slowed to 2.7 per cent in April, from 2.9 per cent the previous month, according to a report from Statistics Canada. The deceleration was moderated by a 6.1 per cent increase in gasoline prices. Excluding gasoline, inflation was up by 2.5 per cent, which compares with 2.8 per cent growth in March.

Crude oil was softer in early activity, with West Texas Intermediate crude oil down by 1.03 per cent at US$78.98 per barrel.

The TSX was stronger, up 56.49 points at 8:46 CDT to trade at 22,521.86 points.