BUSINESS

Loonie nearly unchanged while key commodities struggle to move higher

09/21/2012 09:16 EDT | Updated 11/21/2012 05:12 EST
TORONTO - The Canadian dollar wrapped up Friday relatively unchanged, with commodities showing signs of price weakness.

The loonie gained 0.01 of a cent to 102.42 cents US.

November crude on the New York Mercantile Exchange moved up 48 cents to US$92.89 a barrel, meaning that the price of oil lost six per cent on the week.

The December bullion contract increased $7.80 to end the week at US$1,778 an ounce. December copper was up three cents to US$3.79 a pound.

A report from Statistics Canada showed that Canada's inflation rate continued to slide in August, dipping one-tenth of a point to 1.2 per cent as most goods and services tracked by the agency fell or rose moderately compared with the same month last year.

"While slow growth and global economic risks nearly slayed the notion that the Bank of Canada would be hiking rates any time soon, today’s inflation report put a nail in the coffin," wrote CIBC World Markets economist Emanuella Enenajor in a note.

"While the core inflation data were a touch above the street’s call, that only marks a slight bounce back after several months of weakness, and suggests underlying inflationary pressures are still too weak to see the Bank Canada make good on its warnings that rate hikes could be on the table."