Canadian Financial Close: C$ softens with inflation data

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The Canadian dollar was weaker on Tuesday, as soft inflation data raised expectations that the Bank of Canada will likely cut interest rates sooner rather than later.

The Canadian dollar settled at US$0.7398 or US$1=C$1.3518 on Tuesday, which compares with Friday’s close of US$0.7416 or US$1=C$1.3484. Most Canadian markets were closed for provincial holidays on Monday.

Canada’s annual rate of inflation fell to 2.9 per cent in January after hitting 3.4 per cent in December, according to a report from Statistics Canada. On a seasonally adjusted monthly basis the consumer price index was down by 0.1 per cent in January, marking the first decline since May 2020.

Crude oil was weaker on Tuesday, with West Texas Intermediate crude oil down by 1.16 per cent at US$78.27 per barrel.

The TSX Composite Index lost 38.08 points to close at 21,217.53 points.

Canada’s agricultural sector performed as follows:

Buhler Ind.———————-up  $ 0.02    at $  2.19

Linamar Corp.——————–dn  $ 0.48    at $ 66.37

Maple Leaf Foods—————–dn  $ 0.38    at $ 25.69

Nutrien Ltd.———————dn  $ 0.50    at $ 68.42

RB Global Inc.——————-dn  $ 1.39    at $ 91.59

Farmers Edge Inc.—————-dn  $ 0.005   at $  0.34

(All figures are in Canadian dollars.)