By Commodity News Service Canada
WINNIPEG, Oct. 20 (CNS Canada) The Canadian dollar was weaker Friday morning, dropping sharply relative to its U.S. counterpart as domestic retail sales data disappointed.
At 9:14 CDT Friday morning the Canadian dollar was at US$0.7940 or C$1.2594 which compares with Thursday’s North American close of US$0.8014 or C$1.2478.
Canadian retail sales fell by 0.3 per cent in August, according to Statistics Canada data. Average market expectations had been for a slight increase on the month, and the surprising drop was seen cutting into the chances of an interest rate hike in the country.
However, inflation data was somewhat supportive, with the Consumer Price Index rising by 1.6 per cent on an annual basis in September. That compares with 1.4 per cent growth the previous month.
Crude oil was softer on Friday, putting some pressure on the energy-linked Canadian currency.
The TSX was stronger at 9:14 CDT, up 54.38 points at 15,872.4
