The Canadian dollar rose to its highest level in two and a half months against the US dollar on Wednesday after the United States postponed the introduction of new tariffs on Canadian goods, and the US currency weakened significantly. Canada’s national currency, also known as the “loonie,” was trading up by five‑tenths of a percent at 1.3823 per US dollar, or 72.34 US cents, which was its strongest position since June 2.

U.S. President Donald Trump announced late on Tuesday a three‑day pause in the introduction of new 50 percent tariffs that were set to take effect at midnight on Canadian goods. According to Trump, the two countries have reached an agreement. Monex Europe strategists noted in their analytical note that the three‑day suspension of the threatened duties gave the Canadian dollar a temporary respite, but its duration will depend on the outcome of negotiations in the coming days.

The U.S. dollar declined against a basket of major currencies amid a weakening of the sell‑off of U.S. Treasury bonds. Investors were expecting the publication of the minutes from the Federal Reserve’s latest monetary policy meeting to obtain additional guidance. The yield on 30‑year U.S. Treasury bonds fell from levels near the highest in nineteen years after the Treasury Department announced a doubling of liquidity support operations through the purchase of long‑term bonds.

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