The Canadian Dollar registered a steep increase early Friday morning following Statistics Canada's report of unexpectedly strong consumer price index data for February.

Currently, the U. S. Dollar is valued at around C$1.0111 after plunging to C$1.0100 from C$1.0178 just after Statistics Canada revealed that core inflation was 2.1% at an annualized rate in February, surpassing the 2.0% recorded in January and the 1.7% anticipated by economists.

Also, it is reported that all-items CPI registered an increase by 1.6%, higher compared to the 1.4% speculated by the market. It was at 1.9% in January.

The surprising inflation results is expected to contribute to the expectations that the Bank of Canada could initiated with hiking interest rates prior to the U. S. Federal Reserve and other major central banks.

"If the CPI number doesn't skim off some of the froth out of the market, investors will be gunning for Carney to drop the conditional commitment", David Watt, Senior Currency Strategist in Toronto at Royal Bank of Canada, the nation's biggest lender, said before today's report.

The Canadian Dollar registered a weakness in overnight trading, with the U. S. Dollar rising to a session high at C$1.0188, according to EBS via CQG.