The Canadian dollar strengthened against its U.S. counterpart on Wednesday, extending its rebound from a one-month low, as investors weighed prospects of Canada's receiving some relief from U.S. tariffs.

A significant impact on Canada's foreign investment inflows could potentially compromise economic growth, creating a bearish outlook for the loonie”

President Donald Trump’s 25% tariffs on Canada and Mexico came into effect Tuesday. The president also doubled the tariff on all Chinese imports to 20% from 10%. Canada and China immediately retaliated tariffs on American goods.