[TORONTO, ON] — The Canadian dollar moved slightly higher today as the country's inflation rate dropped to its lowest level in nearly two years.
The loonie was up 0.15 of a cent at 97.30 cents US in the morning after the report from Statistics Canada on May inflation was released.
The agency said that inflation rate fell to 1.2 per cent last month as Canadians paid less for gasoline, video equipment and some types of clothing, while price gains in many other consumer goods moderated.
Economists had expected a big decline in inflation in May from April's two per cent, but the actual drop was much steeper and took the consumer price index to the lowest level it's been since June 2010.
Meanwhile, Moody's Investors Service moved to cut the credit ratings of 15 of the world's largest banks, including Barclays, Deutsche Bank and Royal Bank (TSX:RY), over concerns related to banks with significant financial markets businesses because those markets have become so volatile.
In commodities, the August crude contract on the New York Mercantile Exchange was up 23 cents at US$78.43 a barrel.
August gold was up $3.70 at US$1,569.20 an ounce.