Canadian Dollar and Business Outlook: Loonie, inflation down

Glacier FarmMedia MarketsFarm – The Canadian dollar plunged on Tuesday morning after the release of surprising economic data from Statistics Canada (StatCan).

The loonie was at US$0.7349 or US$1=C$1.3607 as of 8:49 a.m. CDT, compared to US$0.7385 or US$1=C$1.3541 on Monday. StatCan reported this morning that the country’s annual inflation rate slightly declined to 2.8 per cent in February, instead of surpassing three per cent which many economists expected. Grocery prices also rose more slowly at 2.4 per cent.

The United States Dollar Index jumped 0.48 of a point at 103.91.

Crude oil prices continued to rise on Tuesday due to economic data from China and Ukrainian attacks on Russian refineries. Brent crude oil was up US$0.30 at US$87.19 per barrel. West Texas Intermediate (WTI) increased US$0.31 at US$83.03/barrel.

The TSX/S&P Composite Index gained 44.47 points at 21,881.65.

Gold declined US$9.30 at US$2,155.00 per ounce.