By Commodity News Service Canada
WINNIPEG, Feb. 28 – The Canadian dollar closed higher, as data showed better than expected annual Canadian inflation figures, analysts said.
The Canadian economy grew at an annualized rate of 2.9 per cent in the fourth quarter, beating expectations of a 2.5 per cent growth, Statistics Canada said.
The Canadian dollar closed at US$0.8980 or US$1=C$1.1136 on Friday, which compares with Thursday’s North American settlement of US$0.8980 or US$=C$1.1136.
Traders were also starting to turn back to riskier assets due to the strength seen in outside equity markets, industry watchers said.
However, Statistics Canada showed December’s gross domestic product data was below expectations, as it dropped 0.5 per cent during the month.
Canadian bonds were lower due to strong Canadian and US data, market watchers said.
