U.S. stocks likely will open flat Tuesday as the U.S. dollar weakened to a record low against the euro, trading is expected to thin ahead of the Thanksgiving holiday.

The U.S. dollar reached a new low against the euro, which rose to US$1.3085 amid persistent concerns about the U.S. trade and budget deficits.

Canadian investors will be responding to news that higher gasoline prices fueled inflation in October. The jump in gas prices pushed the 12-month increase in the Consumer Price Index to 2.3% in October from 1.8% in September, Statistics Canada said today.

StatsCan said the 12-month advance in the all-items index excluding energy edged up to 1.5% in October from 1.4% in September 2004.

In a separate release, StatsCan said the growth of the leading indicator continued to slow, from 0.3% in September to 0.2% in October, after hitting a two-year high of 1.0% in June.

In this morning’s business news, Toronto-based Patheon is paying US$350 million in cash, stock and assumed debt to acquire Mova Pharmaceutical Corp., a U.S. prescription drug contract company based in Puerto Rico.

Patheon said the deal is expected to add “significantly” to earnings starting in 2005.

The Canadian dollar opened at US84.37¢, up 0.1 of a cent. On Monday, The Canadian dollar soared to a 12-year high on Monday, buoyed by better than expected retail sales figures and Bank of Canada Governor David Dodge’s remarks that the domestic currency’s recent rise versus the greenback was not inappropriate.

Toronto stocks closed stronger Monday, getting a boost from a late-afternoon rally in New York. The S&P/TSX composite index rose 32.08 points, or 0.36%, to 8,991.48. Volume was about 206 million shares.

The junior S&P/TSX Venture composite index closed down 1.23 points at 1,705.48. Volume was 78 million shares.

In New York, a drop in oil prices pushed stocks higher. Crude oil futures closed down 25¢ to US$48.64, on the New York Mercantile Exchange.

The Dow Jones industrial average climbed 32.51 points, or 0.31%, to end at 10,489.82.

The S&P 500 index added 6.90 points to 1,177.24, and the Nasdaq composite index gained 14.56 points, or 0.7%, to 2,085.19.