By Commodity News Service Canada
Winnipeg, June 20 The Canadian dollar was stronger again on Friday morning, as oil prices remained high due to the fighting between Iraq soldiers and Islamic militants over the control of the country’s largest oil refinery, analysts say. The Canadian Dollar is at its strongest level since January as a gauge of inflation exceeded the central bank’s target for the first time in two years.
At 9:35 CDT Friday morning, the Canadian dollar rose to US$0.9294 or US$ = C$1.0753, a steep increase from Thursday’s close of US$0.9235 or $US = C$1.0870.
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Canada’s annual inflation rate jumped an unexpected 2.3 per cent last month, as a continuing gain in energy prices pushed the key economic indicator above the Bank of Canada’s 2 per cent target for the first time in more than two years, according to Statistics Canada. StatsCan also said the key contributors to the core inflation were the higher prices of meat, travel accommodation and electricity.
Markets are keeping an eye on the escalating violence in Iraq, where the country’s government is desperately trying to hold back extremists at the Beiji oil refinery. By late Thursday the two sides held different parts of the refinery, reports say.
The refinery, which extends over several square kilometers of desert and 250 kilometers north of Baghdad, has a capacity of 320,000 barrels a day, traders say. This account of a quarter of Iraq’s refining capacity.
On the commodity markets, the July crude oil contract was up to US$106.45 a barrel, while August gold bullion was down to US$1,312.20 an ounce and July copper was up a penny to US$3.09.
The TSX was up 8.55 points to sit at 15,120.77 at 9:35 CDT Friday morning.
