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 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