WSJ:Canadian Dollar Edges Slightly Higher After Domestic CPI
Of DOW JONES NEWSWIRES
TORONTO (Dow Jones)--The Canadian dollar edged slightly higher early Friday, as Canada's consumer price index was right in line with expectations.
The U.S. dollar was at C$0.9898 early Friday, from C$0.9912 just ahead of the data, and C$0.9903 late Thursday, according to data provider CQG.
Core inflation, the rate watched closely by the Bank of Canada, climbed 1.6% year-over-year in July, matching expectations. The rate rose at a softer-than-expected rate of 1.3% in June.
The Bank of Canada, an inflation-targeting central bank, aims to keep the year-on-year core rate at 2.00%.
The headline CPI rate rose 2.7% from the year earlier, just shy of the 2.8% rise the market was expecting.
Investors now await testimony from Canadian Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney, who are slated to appear at 9:00 am EDT before the House of Commons Finance Committee.
Given the recent moves in equity markets and the persistent global risks, members of Parliament are likely to steer their questions toward the appropriateness of the BoC's tightening bias.
-By Karen Johnson, Dow Jones Newswires; 416-306-2022;
