Canadian Dollar Retreats from Six-Week High Amid Economic Growth

The Canadian dollar experienced a slight downturn on Friday morning, retreating from its six-week high against the US dollar recorded on Thursday.

At 9:12 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 Canadian economy showed growth in May, with a 0.3 per cent increase in real gross domestic product (GDP) reported by Statistics Canada. This marks the second consecutive monthly rise. Early data for June indicates a 0.2 per cent gain, suggesting a quarterly growth of 0.8 per cent and an annualized inflation rate of 3.4 per cent if realized.

The Bank of Canada's target inflation rate is 2.5 per cent. Crude oil prices rose in early activity due to escalating tensions in the Middle East, with West Texas Intermediate increasing by 2.3 per cent to US$85.54 per barrel. The Toronto Stock Exchange (TSX) also experienced a decline, down 273.11 points at 9:12 CDT to trade at 35,232.73.