Forex News: Canadian Dollar Falls As Inflation Eases

Canadian Dollar Falls As Inflation Eases

(RTTNews) - The Canadian dollar declined against its major counterparts in the New York session on Tuesday, after a data showed that inflation slowed more than expected in March.

Data from Statistics Canada showed that the consumer price index rose 2.3 percent year-over-year in March, following an increase of 2.6 percent in February. The reading was expected to remain unchanged.

On a seasonally adjusted monthly basis, the CPI was flat in March versus a 0.6 percent rise in the previous month.

Core inflation, excluding food and energy, fell to 0.1 percent, compared to a 0.5 percent increase last month.

The Bank of Canada is expected to keep its benchmark interest rate at 2.75 percent at its next meeting on Wednesday.

The loonie fell to 1.3978 against the greenback and 102.39 against the yen, setting 4-day lows. The currency is poised to challenge support around 1.41 against the greenback and 101.00 against the yen.

The loonie declined to near a 2-week low of 0.8879 against the aussie. The currency may challenge support around the 0.90 level.

The loonie retreated to 1.5775 against the euro, from an early 4-day high of 1.5673. If the currency falls further, it is likely to test support around the 1.59 region.

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