Skip to main content

The Globe and Mail

Loonie edges down after inflation rises more than expected

Canadian dollars.


The Canadian dollar ended relatively unchanged on Wednesday as the latest inflation numbers showed the largest monthly increase in consumer prices in more than 20 years.

The loonie was down 0.01 of a cent (U.S.) to 98.38 cents, after rising as much as 0.13 of a cent in the morning.

The latest data from Statistics Canada showed that the annual inflation rate in February jumped more than expected to 1.2 per cent from 0.5 per cent a month earlier.

Story continues below advertisement

Economists had expected a gain of 0.8 per cent.

"While today's figures are much stronger than expected, they still track a pace that should raise little worry for the Bank of Canada — and still point to continued slack in the economy," CIBC economist Emanuella Enenajor said in a note.

Concerns about the future of Europe's economy were also affecting the value of the euro.

Europe's main currency fell after efforts to form a coalition government in Italy were abandoned by centre-left leader Pier Luigi Bersani. Meanwhile, Cyprus worked to iron out the final details to reopen its banks on Thursday after a nearly two-week closure as it struggled to come up with a bailout agreement.

The euro ended down 0.88 of a cent (U.S.) to $1.2773, according to the Bank of Montreal.

In commodities, June bullion rose $9.90 to $1,607.20 an ounce, as the TSX gold sector moved higher. May copper was unchanged at $3.44 a pound.

The May crude contract on the New York Mercantile Exchange rose 24 cents to $96.58 a barrel.

Story continues below advertisement

Report an error

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at