TORONTO - The Canadian dollar moved lower Tuesday as investors, spooked by global economic and geopolitical uncertainty, flocked to the safety of gold and the U.S. dollar.
The loonie was off 0.54 of a cent at 97.74 cents US at market close.
The U.S. dollar made strides amid fears Ireland's debt crisis will spread to other financially weak European countries. Investors also fretted over a North Korea artillery attack on a South Korean island and reports that Chinese banks have reached lending quota ceilings.
That is pushing the price of gold and the greenback higher.
December bullion prices rose $19.80 to US$1,377.6 an ounce.
The euro lost even more ground Tuesday, falling to $1.34 US -- its lowest level against the U.S. currency since late September -- amid investor fears over the possible the spread of Europe's debt crisis.
The January crude contract lost 49 cents to US$81.25 a barrel on the New York Mercantile Exchange, while the December copper contract on the Nymex slipped five cents to US$3.70 a pound.
Stronger than expected inflation last month also weighed on the loonie. As the price of goods and services rises, purchasing power of a given currency shrinks and the currency loses value.
A Statistics Canada report found that Canada's annual inflation rate jumped half a point to 2.4 per cent in October as the cost of gasoline, cars, shelter and food all rose.
The rate follows a 0.2 per cent rise the previous month and brought the country's annual inflation rate to the highest it's been in two years.
