Canadian dollars.JONATHAN HAYWARD/The Canadian Press
The Canadian dollar got a boost Friday on higher commodities prices while the latest figures on inflation held steady.
The loonie finished up 0.92 of a cent to close at 79.50 cents (U.S.) after Statistics Canada reported that February inflation data showed lower gas prices offset higher prices for nearly everything else.
The federal agency said the consumer price index rose 1.0 per cent in February from a year earlier, mostly as a result of lower fuel prices. Gasoline prices were 21.8 per cent lower in February than a year earlier, while fuel oil tumbled 23.4 per cent, the report said.
Statistics Canada also reported that retail sales fell for the second consecutive month in January, dropping 1.7 per cent to $41.4-billion (Canadian). Excluding sales at gasoline stations, retail sales were down 0.8 per cent.
"Canadian inflation figures look weak, largely because of depressed oil prices, but the Bank of Canada is keen to stress the economy won't see deflation," Dennis de Jong, managing director at UFX.com, said in a note.
"However, the pressure is now firmly on the board to consider readjusting its neutral policy with sluggish retail sales also of concern."
In commodities, the April crude contract in New York, which expired on Friday, rose $1.76 (U.S.) to $45.72 a barrel.
Metals were higher with the April gold bullion contract ahead $15.60 to $1,184.60 an ounce and the May copper contract soaring 10.1 cents to $2.76 a pound.