The Canadian dollar extended its recovery from a 4-1/2 year low against its U.S. counterpart on Wednesday as investors bet on Canada avoiding threatened U.S. trade tariffs through negotiation and looked ahead to domestic GDP data.

The loonie was trading 0.2 per cent higher at 1.4005 to the U.S. dollar, or 71.40 U.S. cents, moving closer to the roughly 1.3985 level prevailing before Trump vowed on Monday to impose a 25 per cent tariff on imports from Canada and Mexico as one of his first executive orders.

The Canadian dollar dropped after U.S. President-elect Donald Trump vowed across-the-board tariffs on Canadian products if issues with the border are not fixed by the time he is sworn in. As of around 9 a.

The Canadian dollar clawed back some of its decline against its U.S. counterpart on Tuesday as investors weighed the likelihood of hefty trade tariffs pledged by U.S. President-elect Donald Trump on Canadian products being implemented.

US and European stock markets wobbled Wednesday as key US inflation data showed an uptick, with traders also weighing US President-elect Donald Trump's tariff threats and a political standoff in

Any speculation that U.S. President-elect Donald Trump would adopt a 'softly, softly' approach to his trade and economic policies was jolted overnight as he warned of immediate tariff hikes on Canada,

Trump said in a post on Truth Social that on his first day in office he would impose a 25% tariff on all products from Mexico and Canada, and an additional 10% tariff on goods from China, citing concerns over illegal immigration and the trade of illicit drugs.