RTTN: Dollar Gains On Euro, Slides Versus Loonie As Canadian Inflation Picks Up
(RTTNews) - The dollar was mixed Friday morning, losing ground versus the loonie while strengthening against the euro and sterling.
Inflation concerns in Canada may force policy makers to hie rates north of the border, keeping the dollar under pressure against the loonie.
Canadian consumer prices rose 1.6% in the 12 months to February, following a 1.9% increase in January, putting further pressure on the Bank of Canada to hike interest rates.
Conversely, US consumer prices unexpectedly came in flat in February. indicating that inflation is not yet a concern to Federal Reserve policy makers.
The buck slumped to C$1.01 from an overnight level near C1.0180, edging back toward yesterday's year and a half low of C$1.007.
At the same time, the dollar held its ground versus other majors on hopes the US jobs market is on the mend.
Yesterday, the Labor Department reported marginal decline in weekly jobless claims and the Dow Jones Industrial Average extended gains for eight successive days.
The dollar rose to 1.3550 versus the euro, extending its gains from the previous session. With the advance, the dollar moved back toward a 9-month high of 1.3434 set earlier this month. German producer price data is expected later today.
The buck also gained against the sterling, improving to 1.5130.
Versus the yen, the dollar traded above Y90, having bounced back and forth around that mark for most of 2010.
Japan's all industry activity climbed 3.8% in January from December, according to a report published by the Ministry of Trade, Economy and Industry on Friday.
