TORONTO – The Canadian dollar was flat Monday on a day with very little scheduled on the global economic calendar.

The loonie dipped 0.08 of a cent to 97.06 cents US.

The dollar had been boosted by news from China last week, when that country reported that inflation in July was steady at an annual rate of 2.7 per cent — slightly below an expected modest increase to 2.8 per cent.

The world’s second-largest economy had also reported that industrial production rose 9.7 per cent, ahead of expectations for a nine per cent increase, and that retail sales grew 13.2 per cent in July from a year earlier.

But much of that good news had faded by Monday, as Japan reported a 2.6 per cent annualized second-quarter growth rate. The number was below the 3.8 per cent rate recorded in the first quarter and sharply below the 3.6 per cent predicted by analysts.

Investors are concerned that the big monetary stimulus that is being pursued by the Japanese government may not be reaping the rewards that had been hoped for. Japan is trying to come out of a two-decade economic stagnation.

The dollar saw little movement with not much by the way of economic news set for release from Canada.

In the U.S., the Treasury Department is expected to report later that the national deficit fell again last month when the report is released this afternoon.

On the commodities front, December bullion jumped $27.80 to US$1,340 an ounce.

The September crude contract on the New York Mercantile Exchange fell 72 cents to US$105.25 a barrel. Copper was ahead a penny to $3.31.