Canadian dollar higher, October inflation rises slightly more than expected

TORONTO – The Canadian dollar was higher Friday amid data showing inflation remaining tame during October.

The loonie was up 0.07 of a cent to 100.35 cents US as Statistics Canada reported that the consumer price index was up 1.2 per cent year over year, slightly higher than an expected reading of 1.1 per cent.

Traders also took in some positive economic news from Europe’s biggest economy as German business confidence rose unexpectedly in November after six straight declines.

Munich’s Ifo institute said its key business climate figure rose to 101.4 points in November from 100 in October. Economists had been predicting a modest drop to 99.5.

This was particularly good news as there have been recent signs that German’s export-driven economy is beginning to slow amid weakening demand from other countries from within the European Union, though exports outside the bloc have remained strong.

Oil and metal prices were generally weak as the January crude contract on the New York Mercantile Exchange dipped eight cents to US$87.30 a barrel.

December copper on the Nymex was unchanged at US$3.51 a pound. But December bullion headed $4 higher to US$1,732.20 an ounce.