07:51 AM EDT, 04/11/2025 (MT Newswires) -- The Canadian dollar (CAD or loonie) strengthened to its best level since Nov. 25, on Thursday, briefly punching below $1.40/US$ (or above 71.5 cents), said Bank of Montreal (BMO).

Notably, Nov. 25 just so happens to be the day that President Donald Trump first warned of 25% tariffs on Canada and Mexico, sending the currency skidding, pointed out the bank.

The broader US dollar (USD) has also played a big role here, with the greenback forging higher through the turn of the year, before retreating heavily since early January, stated BMO.

The "big dollar" has now essentially given back all its post-election gains -- although the CAD is still slightly weaker than in early November, and has generally been softer on the crosses since early February, added the bank.

One key point here for Bank of Canada policy is that the BoC has fretted about the inflationary impact of a trade war with the U.S. on Canada, due to retaliatory tariffs and a weak CAD, according to BMO. Well, the second item is now not a big deal and the tariffs have so far been lighter than anticipated on Canada.