The Candian dollar has shot to a fresh 31-year high against the US currency following a jump in the country's inflation reading. The annual rate of CPI inflation in Canada during September shot up to 2.5 pct from 1.7 in August, its highest reading since May 2006. Ashraf Laidi, currency strategist at CMC Markets said that while the Bank of Canada seems intent on keeping interest rates on hold, "rising oil prices and an improved rate differential (following the US cut) are both seen benefiting the currency across the board". At 1.57 pm BST the US dollar was trading at 0.9663 cad, just off its new 31-year low of 0.9650. Shortly before the inflation data was released, the dollar was trading at 0.9730.