Canadian dollar jumps on Trudeau and tariff reports

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 loonie was trading 0.7% higher at 1.4350 to the U.S. dollar, or 69.69 U.S. cents, after touching its strongest intraday level since Dec. 17 at 1.4280.

Trudeau will announce on Monday that he intends to step down as Liberal leader but he will stay on in his post until the party has chosen a replacement, CBC News reported, citing sources.

Analysts say that investors could welcome greater political clarity after increased calls for Trudeau to step aside since December, as well as the prospect of a more market friendly government.