The Canadian dollar rose to a near three-week high against its U.S. counterpart on Monday, as investors weighed the potential for Canada's economy to escape broad-based U.S. tariffs and a report that Canadian Prime Minister Justin Trudeau would resign.

The Canadian dollar was rising following media reports that Canada's Prime Minister Justin Trudeau could announce he will resign, potentially as early as Monday. The appreciation is modest, however, compared with the currency's sharp depreciation in December,

The impact of Justin Trudeau’s resignation on the Canadian dollar appears to be fading, as domestic politics take a backseat to systemic headwinds, including those caused by Trump tariffs and the expectation of more Bank of Canada rate cuts.

The Canadian dollar strengthened against the greenback on Tuesday, and the yield on benchmark government debt climbed. The loonie was trading 0.1% higher at C$1.4319 to the greenback, or 69.84 U.S. cents,