Canadian Financial Close: C$ strengthens

Glacier FarmMedia | MarketsFarm — The Canadian dollar was stronger on Tuesday, as currency markets reacted to the latest inflation data.

The Canadian dollar settled at US$0.7176 or US$1=C$1.3935, which compares with Friday’s close of US$0.7154 or US$1=C$1.3979. Canadian markets were closed Monday for Victoria Day.

Canada’s consumer price index was up 1.7 per cent on an annual basis in April, which compares the 2.3 per cent year-on-year growth reported the previous month, Statistics Canada reported. However, excluding energy, the core CPI was up 2.9 per cent from 2.5 per cent in March. The data was seen as lowering the likelihood of another interest rate cut from the Bank of Canada in June.

Crude oil held relatively steady, with West Texas crude oil was down by 0.11 per cent at US$62.62 per barrel.

The TSX Composite Index was up by 83.70 points to close at 26,055.63 points.