Canadian dollar higher, October inflation rises slightly more than expected

TORONTO – The Canadian dollar closed higher Friday amid data showing inflation remained tame in October and higher prices for oil and copper.

The commodity-sensitive loonie was up 0.53 of a cent to 100.81 cents US as Statistics Canada reported that the consumer price index was up 1.2 per cent year over year, slightly higher than an expected inflation reading of 1.1 per cent.

The January crude contract on the New York Mercantile Exchange gained 90 cents to US$88.28 a barrel.

December copper on the Nymex was three cents higher at US$3.53 a pound while December bullion jumped $23.20 to US$1,751.40 an ounce.

Traders also took in some positive economic news from Europe’s biggest economy as German business confidence rose unexpectedly in November after six straight declines.

Munich’s Ifo institute said its key business climate figure rose to 101.4 points in November from 100 in October. Economists had been predicting a modest drop to 99.5.

This was particularly good news as there have been recent signs that German’s export-driven economy is beginning to slow amid weakening demand from other countries from within the European Union, though exports outside the bloc have remained strong.