TORONTO (Reuters) – The Canadian dollar strengthened to a near 5-week high against its U.S. counterpart on Monday as the prospect of U.S. trade tariffs grew less imminent and a Bank of Canada survey showed that firms are beginning to anticipate improved activity.
The loonie was trading 1.1% higher at 1.4325 per U.S. dollar, or 69.81 U.S. cents, after touching its strongest intraday level since Dec. 17 at 1.4262.
Donald Trump will issue a broad trade memo that stops short of imposing new tariffs on his first day in office but directs federal agencies to evaluate U.S. trade relationships with China, Canada and Mexico, an official said.
The U.S. president-elect had threatened an immediate 25% tax on imports from Canada and Mexico. Earlier on Monday, the loonie touched its weakest level since March 2020 at 1.4485.
“Financial markets are staging an across-the-board…
