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 value of the Mexican peso and Canadian dollar jumped Monday after officials from both countries said President Trump agreed to [delay wide-ranging U.S. tariffs by a month](

Stock markets mostly rebounded and there strong gains for Mexico's peso and Canada's dollar Tuesday after Donald Trump said he would delay tariffs on imports from the US neighbours.

The U.S. struck deals with Canada and Mexico on Monday to delay potentially devastating tariffs for a month. Why it matters: The tariffs, had they gone into effect, could have had massive impacts on the economies of all three nations,

The U.S. dollar skyrocketed over the weekend, climbing to a three-week high on Monday after President Donald Trump lived up to his promise and imposed tariffs o