By Commodity News Service Canada
WINNIPEG, April 17 – The Canadian dollar was slightly firmer at midday Thursday, as better-than-expected inflation data provided some support for the currency.
At 11:55 CDT, the Canadian dollar was trading at US$0.9088 or US$1=C$1.1004 which compares with Wednesday’s close of US$0.9076 or US$=C$1.1018.
Canadian consumer prices rose at an annual rate of 1.5% in March, reported Statistics Canada. The increase was slightly above trade expectations, which provided some support for the currency. Core inflation came in at 1.3%.
On Wednesday, Bank of Canada Governor Stephen Poloz said inflation would likely climb to two percent over the next few months because of higher energy prices and a lower Canadian dollar.
The central bank has held the interest rate steady at 1% since
2010, but analysts expect it to rise to 2% by mid to late 2015.
At midday Thursday the Toronto Stock Exchange was stronger, up 36.36 points at 11:55 CDT to sit at 14,482.88.
