Canadian Dollar Dips as Inflation Fears Rise

The Canadian dollar softened slightly on Friday morning after reaching six-week highs against its US counterpart on Thursday.

At 9:12 a.m. CDT, the Canadian dollar was trading at US$0.7111 or US$1=C$1.4063 compared to Thursday's close of US$0.7136 or US$1=C$1.4014.

The Bank of Canada's inflation target is 2.5%, but Statistics Canada reported that early data for June suggests an annualized rate of inflation for the quarter of 3.4% and second-quarter growth of 0.8%. This would be well above the bank's target.