By Commodity News Service Canada
Winnipeg, November 21 – The Canadian dollar was higher on Friday as new data showed that inflation grew by 0.1 percent in October. Economists had been expecting a drop after a 0.2 percent rise in September.
At 8:50 CST Friday morning, the loonie was up 0.67 of a cent to US$0.9227 or US$1 = C$1.0857 as speculation grew the rising inflation rate could prompt the Bank of Canada to look at adjusting Canada’s interest rates.
The loonie has fallen 12 percent against its American counterpart since it fell below parity in February of 2013. Some analysts say a further drop between four to seven percent could happen by mid-2015.
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The US dollar on the other hand, is expected to benefit from rumored hikes to the US interest rate, which could happen by the spring or summer.
On the international scene China announced it was cutting interest rate and injecting additional credit into its financial system.
On the commodity markets the January crude contract in New York gained $1.34 to US$77.20 a barrel. December copper leaped five cents to US$3.07 a pound while the December gold contract rose $10.70 to US$1,201.60 an ounce.
At 8:50 CST Friday morning, the TSX was up 80.86 points to 15,156.04.
