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 reacted as well, dropping to a 22-year-low against the American dollar at US$0.6854. But after U.S. President Donald Trump announced a 30-day pause of tariffs against Canada and Mexico, citing new border security measures in the two countries, the dollar has rebounded sharply.

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.