Canadian Dollar Declines As Inflation Slows

The Canadian dollar drifted lower against its major rivals in European deals on Friday, as Canada's consumer price growth slowed in November, primarily due to fall in gasoline prices.

Data from Statistics Canada showed that Canada's consumer prices grew 2.0 percent on year, following a 2.4 percent growth a month earlier. This is also down from the expected 2.2 percent rise.

On month, the CPI fell 0.4 percent, sharper than expectations for 0.2 percent slide. In October, the CPI edged up 0.1 percent.

Core CPI came in at 2.1 percent, after advancing 2.3 percent in October. Economists were expecting an increase of 2.4 percent.

The core CPI fell unexpectedly to 0.2 percent on month, from 0.3 percent increase last month. The index was seen rising by 0.1 percent.

The loonie declined to 1.1632 against the greenback, after having advanced to a 2-day high of 1.1566 at 12:00 am ET. The next possible support for the loonie is seen around the 1.17 mark.

After advancing to a 9-day high of 1.4202 against the euro in European deals, the loonie reversed direction with pair trading at 1.4290. Continuation of the loonie's downtrend may see it challenging support near the 1.44 mark.

The loonie that advanced to a 1-week high of 103.21 against the yen at 1:30 am ET eased off and was worth 102.40. If the loonie extends slide, 100.00 is seen as its next support level.

The loonie edged down to 0.9510 against the aussie, off early high of 0.9445. Next key support for the loonie may be found around the 0.96 area.