Canadian inflation data for October pushed beyond projections and prompted the nation's monetary unit to climb in value against the U.S. dollar on Friday, according to Reuters.
The loonie's five consecutive days of losses to the greenback ended amid the consumer price index gaining 2.9 percent last month over figures from October 2010. The CPI was 3.2 percent during September. The nation is aiming to spur the economy and speculation indicates the Bank of Canada is less likely to cut borrowing costs.
"This will cause a little bit of a firming of the Canadian dollar," currency trading head Firas Askari with Bank of Montreal's BMO Capital Markets in Toronto told Bloomberg.
Concerns eased about turmoil regarding the sovereign debt crisis' harmful tendencies in the euro zone also benefiting the loonie as other riskier assets also enjoyed a measure of optimism.
Bloomberg reports policy makers with the Bank of Canada have preserved the target lending rate at 1 percent since September of last year and late last month policy makers struck a notation about minimizing monetary stimulus.
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