Canadian dollar hits five-week low as CPI data clips rate-hike bets
The Canadian dollar fell to a near five-week low against the U.S. dollar due to lower-than-expected inflation data. Canada's consumer price index rose to 2.8% in April, which was below analysts' forecasts of 3.1%. This shift in inflation expectations has led to a decrease in market-implied rate hike bets by the Bank of Canada.
- ▪The Canadian dollar traded at 1.3750 per U.S. dollar, marking a decline of 0.1%.
- ▪Canada's inflation rate increased to 2.8% in April, driven by rising gasoline prices.
- ▪Market expectations for rate hikes by the Bank of Canada have decreased following the inflation data.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe Canadian dollar weakened to a near five-week low against its U.S. counterpart on Tuesday as domestic data showed that inflation accelerated less than expected in April and the greenback posted broad-based gains.The loonie was trading 0.1% lower at 1.3750 per U.S. dollar, or 72.23 U.S. cents, after touching its weakest intraday level since April 15 at 1.3773.Canada’s consumer price index increased at an annual rate of 2.8% in April, up from 2.4% in March, driven largely by a surge in gasoline prices after the Iran war pushed global oil prices sharply higher.Analysts had forecast 3.1% for the headline rate, while measures of underlying price pressures, closely watched by the Bank of Canada,…
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