The Canadian dollar traded higher against major opponents following the release of consumer price index or CPI data in New York morning deals on Friday. The pace of Canadian inflation slowed to one percent on an annual basis in June, as prices at the pump declined, official data revealed today.
Consumer prices rose one percent in the 12 months to June, following a 1.4% increase in May, Statistics Canada reported.
Tame inflation gives the Bank of Canada room to hold steady on interest rates through the summer, following modest rate increases over the past two months.
The Bank of Canada’s closely-watched reading on underlying core inflation also edged down in June, dropping to 1.7 percent from 1.8 percent in the previous month.
The loonie showed strength against the US dollar, after a slight weakness in early morning session today. At 12:00 pm ET, the loonie climbed to 1.0360 versus the greenback from early low of 1.0439. At present, the pair is worth 1.0390.
Against the euro, the loonie traded higher in today’s New York morning and hit a new multi-day high of 1.3311 by about 10:40 am ET. The pair that closed yesterday’s New York session at 1.3373, is now trading near 1.3340.
Against its Japanese counterpart, the Canadian currency spiked up in North American deals today. At about 12:00 pm ET, the loonie-yen pair climbed to 84.46, which may be compared to yesterday’s closing value of 83.88. This set an 8-day high for the Canadian unit.