The loonie fell more than a penny against the U.S. dollar in early trading as markets read the soft report as making interest rate hikes in Canada less likely and further off into the horizon.

TORONTO - The Canadian dollar closed at 97.17 cents US on Friday, down 0.95 of a cent from Thursday's close. The U.S. dollar ended at 102.91 cents Cdn, up 0.99 of a cent.

A Canadian dollar, left, and a Euro are seen next to a series of U.S. dollars in this January 26, 2011 photo in Montreal. THE CANADIAN PRESS/Paul Chiasson.

The Canadian dollar posted its biggest loss in a year against its U.S. peer as the nation's annual inflation rate fell in April to its slowest in more than three years, bolstering the case for relaxing monetary policy.

A lower Canadian dollar may be welcome news for the country's exporters, but waiting for the currency to find its new normal is unsettling.

TORONTO - The Canadian dollar was lower Friday as Statistics Canada reported that consumer prices rose last month at the slowest rate since October 2009.

It is an important factor in determining the success of specific Canadian sectors. How important a strong Loonie is to Canada's economy depends on who you ask says Jack Carr, an economist at the University of Toronto.

TORONTO (CP) - The Canadian dollar fell Tuesday as commodities continued to trade lower after beginning the week in negative territory.

TORONTO - The Canadian dollar fell Tuesday as commodities continued to trade lower after beginning the week in negative territory.

Last week, the Canadian dollar was the most shorted major global currency, next to the yen, as speculators ganged up on the currency.