2024.03.1915:38:00UTC+00Canadian Dollar Falls As Inflation Slows Unexpectedly

The Canadian dollar fell against its major counterparts in the European session on Tuesday, as the nation's annual inflation cooled unexpectedly in February.

Data from Statistics Canada showed that the consumer price index rose 2.8 percent year-on-year, down from a 2.9 percent gain in January. Economists had expected inflation to rise to 3.1 percent.

On a seasonally adjusted monthly basis, consumer prices moved up 0.1 percent, compared to a 0.1 percent fall in the prior month.

Core CPI, excluding food and energy, held steady at 0.1 percent.

The loonie touched 1.3613 against the greenback, its lowest level since December 12.

The loonie weakened to near a 2-week low of 1.4779 against the euro, from an early nearly 2-week high of 1.4706.

The loonie retreated to 0.8878 against the aussie and 110.53 against the yen, from an early nearly 2-week high of 0.8831 and a fresh 2-week high of 110.99, respectively.

The loonie is seen finding support around 1.38 against the greenback, 1.49 against the euro, 0.92 against the aussie and 107.00 against the yen.