TORONTO, June 25 - The Canadian dollar edged higher against its U.S. counterpart on Tuesday as domestic data showed inflation heating up in May, raising doubt the Bank of Canada would move to cut interest rates further as soon as next month.
Canada's annual inflation rate unexpectedly accelerated to 2.9% in May from 2.7% in April while key measures of core inflation edged up for the first time in five months. Investors see a 46% chance that the BoC will cut rates at its next policy decision on July 24, down from 65% before the data, swaps market data showed.
The U.S. dollar , opens new tab strengthened against a basket of major currencies while the price of oil , one of Canada's major exports, was down 0.3% at $81.41 a barrel.
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