Canada’s dollar fell versus its U.S. counterpart as Canada’s annual inflation rate rose less than forecast in June, dimming the outlook for higher interest rates. The currency declined as futures on crude oil, the nation’s biggest export, dropped and U.S. stock-index futures weakened. Canada’s dollar is headed for a second-straight weekly increase after crude oil rose yesterday to the highest since May. Canada’s currency, nicknamed the loonie, dropped 0.5 percent to C$1.0123 per U.S. dollar at 8:34 a.m. in Toronto. One Canadian dollar buys 98.78 U.S. cents. The consumer price index climbed 1.5 percent in June from a year ago, compared with a 1.2 percent gain the prior month, Statistics Canada said today from Ottawa. The core rate, which excludes eight volatile products, increased 2.0 percent after a May gain of 1.8 percent. Economists surveyed by Bloomberg forecast that the total rate would be 1.7 percent and core would be 2.3 percent. To contact the reporter on this story: Chris Fournier in Halifax at cfournier3@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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