By Commodity News Service Canada
WINNIPEG, March 27 – The Canadian dollar was slightly weaker Wednesday morning, as solid domestic economic data was countered by the ongoing concerns over the situation in Europe.
At 9:30 CDT Wednesday morning the Canadian dollar was at US$0.9825 or C$1.0178 which compares with Tuesday’s North American close of US$0.9839, or C$1.0164.
Canada’s annual inflation rate climbed to 1.2% in February, from 0.5% the previous month, reported Statistics Canada. The growth beat trade guesses, which was supportive for the currency. However, analysts were uncertain whether or not the inflation data would change the Bank of Canada’s timetable on future interest rate increases, as the rate of growth is still below the Bank’s target.
Meanwhile, uncertainty over the economic situation in Cyprus, along with political instability in Italy, had investors looking away from riskier assets on Wednesday – including the Canadian dollar.
The TSX was weaker Wednesday morning, down 80.47 points at 9:30 CDT to sit at 12,625.91.
