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 on Monday saw its lowest level since March 2003 after the US imposed 25% new tariffs on imports from Canada on Saturday. The exchange rate for the US dollar/Canadian dollar is at 1.4682 Canadian dollars as of 1300GMT and the Canadian dollar index stands at 68.84.

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 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](

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, Mexican peso and euro were steady against the U.S. dollar on Tuesday following a wild ride on Monday when they rebounded sharply from multi-year lows after U.S. President Donald Trump suspended tariffs on Canada and Mexico by a month.