Canadian dollar and business outlook

Glacier FarmMedia | MarketsFarm — The Canadian dollar was firmer Tuesday, as rising inflation was seen reducing the likelihood of large interest rate cuts from the Bank of Canada.

At 9:05 a.m. CST the Canadian dollar was trading at US$0.7143 or US$1=C$1.4000 which compares with Monday’s close of US$0.7121 or US$1=C$1.4042.

Canada’s Consumer Price Index was up by 2.0 per cent on an annual basis in October, up from the 1.6 per cent year-on-year inflation in September, reported Statistics Canada. The increase beat market expectations.

Crude oil was firmer, with West Texas Intermediate crude oil up by 0.42 per cent at US$69.45 per barrel.

The TSX was weaker in early activity, losing 168.22 points at 9:05 CST to trade at 24,808.72.