By Commodity News Service Canada
WINNIPEG, February 22 The Canadian dollar fell to new 7-month lows versus its US counterpart Friday morning, as weak Canadian retail sales data weighed on its value, analysts said.
According to Statistics Canada, retail sales in the country declined 2.1% to C$38.6 billion in December, falling well below expectations of a 0.3% drop.
At 8:55 CST Friday, the Canadian dollar was at US$0.9755 or US$=C$1.0251, which compares with Thursday’s North American close of US$0.9816 or US$=C$1.0187.
Tepid inflation in Canada during the month of January was also a bearish influence on the Canadian dollar. StatsCan said the Consumer Price Index (CPI) rose 0.5% in the 12 months to January, following a 0.8% in December.
Economic concerns in the US, as traders are unsure how much longer the US Federal Reserve will continue its stimulus program, and the country is facing huge budget cuts, also undermined the value of the Canadian dollar.
The TSX was up 60.31 points, or 0.48%, at 8:55 CST Friday morning to sit at 12,700.28.