Canadian dollar slips as crude oil drops

The value of the monetary unit of Canada dropped on Friday against its southerly rival, pulled down by the nation's annual inflation rate increasing less than projected last month, Bloomberg reports.

Also tugging down the Canadian dollar was a decline in the value of crude oil, the top commodity of the natural-resources-rich nation. But, despite the losses, the loonie continues hurtling toward a second consecutive week of gains against the U.S. dollar.

June saw the consumer price index increase 1.5 percent as compared to the same period last year and the 1.2 percent increase from the month prior, according to the Statistics Canada office in Ottawa.

The likelihood of the Bank of Canada tightening monetary policy slimmed with inflation levels remaining low, according to senior economist Sal Guatieri with BMO Capital Markets. The Wall Street Journal reports the world's reserve currency was hovering within a narrow trade range overnight.

Head of FX Strategy Jeremy Stretch with CIBC World Markets authored a note stating the loonie is unlikely to fluctuate very much on Friday as CPI information from last month did not differ from anticipations.