01.07.201401:15:31UTC+00Canadian dollar slightly changed as growth traces forecast

The Canadian dollar was slightly changed at nearly five-month peak against the US dollar after fluctuating as the country’s economy grew less than expected in April.

Loonie tumbled against 12 out of 16 major counterparts. The currency traded at C$1.0671 per greenback at 5:00 p.m. in Toronto. It then weakened around 0.3% to C$1.0697 and gained 0.2% to C$1.0647, the strongest since January 6. One Canadian dollar is equivalent to 93.71 U.S. cents.

The currency has escalated from a 4 1/2 year low of C$1.1279 hit on March 20. It accrued 1.6% in June, surging for a fifth month in the longest winning stretch since 2007. It climbed from March 31 through this month for the first time in three quarters, ascending 3.6%, the most since 2010.

Gross domestic product report backed statements from the Bank of Canada that a profit in inflation is transitory rather than a cue the economy is recovering, dampening bets the central bank might imply a need for an interest rate hike. Earlier this month, figures showed consumer prices rose in May more than predicted.

“Given the increasing signs of mounting pressure on the Canadian dollar, the GDP number doesn’t necessarily mean a meaningful move lower,” said Omer Esiner, Chief Market Analyst at Commonwealth Foreign Exchange Inc.

The country’s economy accelerated 2.1% in April from a year earlier, matching a 2.1% gain last month, Statistics Canada said today in Ottawa.