Canadian Dollar Strengthens Amid Inflation Data

The Canadian dollar strengthened against its US counterpart on Monday due to recent inflation data. The latest consumer price index showed an annual increase of 3.0% in July, surpassing June's 2.8%. This rise was largely driven by volatile gasoline prices, which pushed the overall inflation rate up.

Excluding fuel costs, inflation rose by only 2.2%, highlighting the impact of oil price fluctuations on Canadian economic indicators. Meanwhile, crude oil prices rose 2.9% to $84.82 per barrel, with West Texas Intermediate leading the gains.

The TSX Composite Index suffered a slight loss of 62.35 points to close at 36,667.92 points, as market participants remained cautious ahead of potential US tariffs on Canadian goods.