The Canadian dollar clawed back much of its decline against its U.S. counterpart on Monday as investors weighed the possibility of Canada achieving a reprieve from U.S. tariffs, with the currency rebounding from an earlier 22-year low.

The Canadian dollar dropped below 68 cents U.S. for the first time in more than two decades on Monday before rebounding by more than a cent, as uncertainty over a North American trade war sparked volatility across financial markets.

The Canadian dollar dropped to its lowest level in nearly 22 years on Sunday after U.S. President Donald Trump imposed new tariffs on Canada, Mexico, and China. The tariffs, effective Tuesday, levy 25% on Canadian

The Canadian dollar tumbled to a near five-year low against its U.S. counterpart on Thursday and bond yields fell as U.S. President Donald Trump repeated his threat of hefty tariffs on goods from Canada and Mexico,

The Canadian dollar went on a wild ride Monday, trading below 68 cents U.S. in anticipation of Donald Trump’s 25 per cent tariffs only to soar over 2.5 per cent on news of a reprieve later that day. The loonie rose to 69.