The Canadian dollar plunged broadly on Friday as an unexpectedly benign June inflation report cemented the belief that the Bank of Canada's tightening cycle has reached its end. Bond prices charged ahead, outperforming US treasuries, as dealers priced out expectations that rates will continue to rise.
The currency finished at C$1.1384 to the US dollar, or 87.84 US cents, just off its session low and down from C$1.1329 to the US dollar, or 88.27 US cents on Thursday.
Canada's annual inflation rate slowed unexpectedly in June to 2.5 percent, Statistics Canada said, while core inflation was 1.7 percent.