Canadian dollar eked out gains

Canada's dollar eked out a small gain against the US dollar on Friday after data showed inflation rose more than expected last month, but the move is unlikely to prompt the Bank of Canada to raise interest rates this year. The annual inflation rate increased to 2.5 percent in January from 2.3 percent in December, helped higher by strong energy and transportation prices.
The Canadian dollar finished at C$0.9957 versus the US dollar, or $1.0043, up slightly from Thursday's North American close of C$0.9965 versus the US dollar, or $1.0035. The currency gained 0.6 percent for the week, according to Thomson Reuters data. Canadian bond prices tracked US Treasuries lower across the curve, but largely underperformed across the curve. Canada's two-year bond retreated 5 Canadian cents to yield 1.102 percent. The 10-year bond dropped 26 Canadian cents to yield 2.059 percent.