The Canadian dollar remained lower versus its U.S. counterpart as a government report showed the annual inflation rate increased last month less than forecast. Canada’s currency was headed for its third straight weekly drop against the greenback in what would be its longest five-day losing streak since the period ended August. The loonie, as the currency is also known for the image of the waterfowl on the C$1 coin, depreciated 0.1 percent to C$1.0006 per U.S. dollar at 7:08 a.m. Toronto time. The consumer price index rose 2.6 percent in February from a year earlier following January’s 2.5 percent gain, Statistics Canada said. The core rate, which excludes eight volatile items, rose 2.3 percent, the fastest since December 2008. Economists surveyed by Bloomberg predicted the total rate would quicken to 2.7 percent and core inflation would be 2.2 percent, according to the median of 25 estimates. The Bank of Canada has held its target lending rate at 1 percent since September 2010 in the longest pause since the 1950s. Borrowing costs aren’t forecast to advance until the first quarter of 2013, according to economists in a Bloomberg News survey. To contact the reporter on this story: Austen Sherman in New York at asherman18@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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