The U.S. dollar <.DXY> tumbled to a seven-week low against a basket of currencies on worries that Trump was focusing too much on protectionism and isolationism, and not enough on pro-growth policies.
A more protectionist United States would threaten Canada's economy. But Canadian officials are convinced Mexico will suffer the most damage from changes to the North American Free Trade agreement, under which Canada sends 75 percent of its exports to the United States.
Trump signed orders on Tuesday smoothing the path for Keystone. If constructed, the pipeline would provide oil producers in Canada with a quicker route to send crude to U.S. Gulf Coast refiners. Oil is one of Canada's major exports.
At 9:24 a.m. ET (1424 GMT), the Canadian dollar
The currency's weakest level of the session was C$1.3163, while it touched its strongest since Jan. 18 at C$1.3087.
Gains for the Canadian dollar came even as oil fell. U.S. crude
Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries as gains for global stocks reduced investor demand for safe-haven assets, such as bonds.
The two-year
(Reporting by Fergal Smith; Editing by Lisa Von Ahn)