By Commodity News Service Canada
Winnipeg, July 18 – The Canadian dollar was higher on Friday, despite geopolitical concerns amid higher than expected inflation pressures, analysts say.
At 9:10 CDT Friday morning, the loonie was up 0.29 of a cent to US$0.9324 or US$1 = C$1.0753, as Statistics Canada reported that the consumer price index rose 0.1 per cent during June versus expectations for a slight decline. That translated into an annualized gain of 2.4 per cent, a two-year high, against the 2.3 per cent advance that economists had forecast.
The Bank of Canada governor, Stephen Poloz, said that he is still convinced that the current bump in inflation is temporary and that prices will begin to moderate later this year.
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Geopolitical concerns were high after the Malayisan Airliner was shot down near the Ukraine-Russia border on Thursday.
Ukraine has accused pro-Russian separatists of shooting down the airliner, which caused the death of 298 people. The crash caused a sharp escalation in crisis in the region and is threatening to cause deeper conflict between the east and the west. The rebels denied downing the craft.
On the commodity markets, August crude oil was down 29 cents to US$102.90. Meanwhile gold prices were down to US$1,309.60 an ounce and September copper was down to US$3.18 a pound.
The TSX was up 6.50 points to 15,210.98 at 9:10 CDT Friday morning.
