Reuters: US Dollar Report: CANADA FX DEBT-C$ weaker after short-lived boost from inflation data

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CANADA FX DEBT-C$ weaker after short-lived boost from inflation data Mar 27th 2013, 13:30 Tweet Share this Email Print Related Topics Currencies » Bonds News » Bonds » Markets » Wed Mar 27, 2013 9:30am EDT * C$ at C$1.0166 vs US$, or 98.37 U.S. cents * Inflation jumps in Feb, but seen unlikely to prompt rate hikes By Alastair Sharp TORONTO, March 27 (Reuters) - The Canadian dollar was weaker on Wednesday following a brief spike on data showing domestic prices rose further than expected, but not enough to convince economists that the Bank of Canada would shift back into rate-hiking mode. Canada's annual inflation rate jumped to 1.2 percent in February from a three-year-low of 0.5 percent in January on higher gas and autos prices, Statistics Canada data indicated. The reading was higher than economists had predicted, but still below the central bank's target. "There will be a short-lived pop in the currency, but I don't think it is going to make a fundamental change in the bank's outlook," said Doug Porter, chief economist at BMO Capital Markets. "I think talk about the bank cutting is going to brushed aside now but I don't think this advances the timetable on Bank of Canada rate hikes," he said. At 9:17 a.m. (1317 GMT) the Canadian dollar had given up early gains to trade at C$1.0166 to the greenback, or 98.37 U.S. cents, compared with C$1.0164, or 98.39 U.S. cents, at Tuesday's North American close. The currency had hit its strongest level since Feb. 22 on Tuesday. The price of government bonds was higher across the curve, with the two-year bond up 2 Canadian cents to yield 0.997 percent, while the benchmark 10-year bond rose 35 Canadian cents to yield 1.779 percent. Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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