s tended to jump after recent Fed actions on expectations the Bank of Canada will follow with similar increases. The Canadian dollar could use the boost. It ended last week at its lowest levels of the year. It was trading slightly higher yesterday, with the U.S. dollar buying 1.4696 Canadian dollars compared with 1.4710 late Friday. After dropping nearly 1% against the U.S. currency this month, analysts say the Canadian dollar may finally turn the corner this week. Canada's January trade surplus, due out today, is expected to have expanded by at least C$200 million from the month before, to C$2.9 billion from C$2.7 billion for December. Though Canada's consumer-price index, released last week, revealed a slight increase -- to a 1.6% yearly pace from 1.4% in January -- that figure still is at the bottom of the Bank of Canada's 1% to 3% target range. Nonetheless, while many analysts say a rate increase is not needed, they believe the BOC will approve one if the Fed moves today, in order to prevent a widening gap between U.S. and Canadian yields. There is continued speculation that the European Central Bank might also raise rates again next week, particularly after new euro-zone consumer-price-index data released late last week showed inflation in the region for February reached 2% year-over-year growth-the ECB's ceiling for price stability. Still, talk has subsided somewhat after comments by ECB president Wim Duisenberg. Mr. Duisenberg said that after the ECB's 0.25 percentage-point raise Thursday, euro-zone interest rates are "appropriate for the present situation" despite continued price pressure. He emphasized that the ECB's enemy is inflation rather than a weak currency, and that the exchange rate is not a direct target of the ECB's actions Foreign Exchange Dollar Rises Against Yen as Japan's Central Bank Acts to Weaken Currency By Jennifer Barrett 03/09/2000 The Wall Street Journal Page C21 (C...
