The Canadian dollar strengthened to nearly a three-month high against its U.S. counterpart on Thursday as the greenback posted broad-based declines and Canada’s international trade data added to evidence the domestic economy has withstood the initial shock of the trade war.

The loonie was trading 0.2% higher at 1.3765 per U.S. dollar, or 72.65 U.S. cents, after touching its strongest intraday level since September 17 at 1.3757. Canada posted a monthly trade surplus of C$153 million (US$110.92 million) in September, reversing a trend of seven consecutive months of deficits. Economists had forecast a C$4.5 billion deficit.

“Near-term progress will be far from linear, but it is reasonable to believe that peak negative impacts from tariffs are in the rearview mirror,” Marc Ercolao, an econom

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