The Canadian dollar strengthened against its U.S. counterpart on Friday, adding to its weekly gain, as few new details on proposed U.S. tariffs led to broad-based declines for the American currency.

Speaking from the Oval Office Monday evening, Trump said, “We are thinking in terms of 25 per cent tariffs on Canada and Mexico. I think we will do it Feb. 1.”

The Fed is expected to keep interest rates on hold but the larger story unfolding will be how the central bank confronts early moves by Trump.

The Canadian dollar recouped much of its earlier decline against the greenback on Tuesday as investors assessed the chances of U.S. President Donald Trump carrying out a threat to impose a hefty tax on imports from Canada next month.