Dollar falls after weak inflation report

Canadian Loonies, otherwise known as a one dollar coin, are displayed on top of an American currency in this posed photograph in Toronto, October 10, 2008. REUTERS/Mark Blinch

TORONTO – The Canadian dollar lost ground today after an unexpectedly weak inflation report for August.

Statistics Canada says the consumer price index was up 1.1 per cent in August compared with a year ago.

Economists had expected a gain of 1.4 per cent, according to Thomson Reuters.

READ MORE: Lower fuel prices drag down Canada’s inflation rate in August 

The loonie was down 0.41 of a cent at 76.15 cents US.

On the stock market, the S&P/TSX composite index dropped 35.45 points to 14,761.73.

In New York, the Dow Jones industrial average fell 48.59 points to 18,343.87, while the broader S&P 500 index lost 5.04 points at 2,172.14.

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READ MORE: Link between Canadian dollar and oil prices coming undone

The Nasdaq composite dropped 16.63 points to 5,322.89.

On the commodity markets, the November crude oil contract fell 28 cents to US$46.04 per barrel, while the November contract for natural gas shed 3.2 cents to US$3.029 per mmBtu.

December gold contracts lost US$2.30 to US$1,342.40 per ounce.

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