Canadian dollar and business outlook

The Canadian dollar was slightly softer Tuesday morning, as a slowdown in the country’s rate of inflation weighed on the currency.

At 8:48 a.m. CDT the Canadian dollar was trading at US$0.7346 or US$1=C$1.3613, which compares with Monday’s close of US$0.7357 or US$1=C$1.3593.

Canada’s consumer price index was up by 2.0 per cent on an annual basis in August, down from 2.5 per cent the previous month and the slowest pace of inflation since February 2021, according to a report from Statistics Canada.

Meanwhile, the Canadian Mortgage and Housing Corporation reported that housing starts in the country dropped by 22 per cent in August compared to the previous month.

Crude oil was firm in early activity, with West Texas Intermediate crude oil up by 0.17 per cent at US$70.21 per barrel.

The TSX was stronger, rising 53.55 points at 8:48 CDT to trade at 23,755.62.