Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, January 25 The Canadian dollar moved further below parity with its US counterpart at 8:52 CST Friday, as weak Canadian inflation data weighed on its value, analysts said.

According to Statistics Canada, the country’s Consumer Price Index (CPI) rose 0.8% in the 12 months to December, falling below expectations of a 1.2% increase.

At 8:52 CST Friday, the Canadian dollar was at US$0.9925 or US$=C$1.0075, which compares with Thursday’s North American close of US$0.9971 or US$=C$1.0029.

The Canadian dollar also continued to move lower in reaction to the Bank of Canada’s dovish announcement Wednesday when the bank downgraded its economic growth outlook.

The TSX was up 77.72 points, or 0.61%, at 8:52 CST Friday morning to sit at 12,872.87.