Loonie Hits 12-Day Low as Inflation Data Meets Expectations and Fed Bets Rise

The Canadian dollar hit a 12-day low against its U.S. counterpart on Monday as inflation data met expectations and investors bet on a Federal Reserve interest rate hike.

The loonie was trading 0.3 per cent lower at 1.3915 per U.S. dollar, or 71.86 U.S. cents, after touching its weakest intraday level since September 2 at 1.3929.

According to Marc Chandler, chief market strategist at Bannockburn Global Forex LLC, the stronger U.S. dollar is driven by a shift in expectations on Fed policy and the conflict in the Middle East, which has pushed up oil prices.

Canadian Prime Minister Mark Carney welcomes global investors to Toronto this week, hoping to lure investments for more than 160 projects key to steering Canada's economy through a trade war with the United States.