TORONTO — The loonie surged higher after Statistics Canada reported the annual inflation rate in June hit its highest mark in more than six years, while Canada's main stock index lost ground.

The Canadian dollar was trading at 76.16 cents US, up from an average value of 75.44 cents US on Thursday.

The increase followed the report that the country's annual inflation rate rose to 2.5 per cent in June, up from a 2.2 per cent reading in May.

The jump in the loonie came as the S&P/TSX composite index fell 59.10 points to 16,483.91, after 90 minutes of trading.

In New York, the Dow Jones industrial average was up 28.60 points to 25,093.10. The S&P 500 index was up 1.92 points to 2,806.41 and the Nasdaq composite index was up 27.39 points to 7,852.69.

The September crude contract was down 25 cents to US$67.99 per barrel and the August natural gas contract was unchanged at US$2.77 per mmBTU.

The August gold contract was up $4.70 to US$1,228.70 an ounce and the September copper contract was up five cents US$2.75 a pound.