Canadian Forex Midday: C$ Dips Further Below Parity

By Commodity News Service Canada

Winnipeg, January 25 – The Canadian dollar dipped further below parity with the US dollar at midday Friday, with weak Canadian inflation data behind much of the downward move, 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 11:47 CST Friday, the Canadian dollar was trading at US$0.9911, or US$1=C$1.0090, which compares with Thursday’s North American close of US$0.9971, or US$=C$1.0023.

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.

Weak commodity prices, including crude oil and metal values, also helped the Canadian dollar move further below parity with its US counterpart, traders said.

The Toronto Stock Exchange was up 3.41 points, or 0.03%, at 11:47 CST Friday, to sit at 12,827.03.