TORONTO, April 7 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Monday, clawing back some earlier declines, as Wall Street gyrated and after Canada last week avoided new duties on its goods in a widening global trade war.
The loonie was trading 0.1% higher at 1.42 per U.S. dollar, or 70.42 U.S. cents, after trading in a range of 1.4180 to 1.4296.
Among Group of 10 currencies, only the safe-haven Swiss franc posted a larger gain, while all the others lost ground.
"CAD is outperforming non-USD peers as Canada remains relatively shielded from the new round of tariffs," said Jayati Bharadwaj, a global FX strategist at TD Securities.
The U.S. on Wednesday unveiled a 10% baseline tariff on all imports to the United States and higher targeted duties on some of the country's biggest trading partners.
Goods from Canada and Mexico that comply with the USMCA trade agreement among the three countries will largely remain exempt from tariffs, except for auto exports and steel and aluminum which fall under separate tariff policies.
Major stock indexes remained volatile as U.S. President Donald Trump said he will impose an additional 50% tariff on China if Beijing does not withdraw its retaliatory tariffs on the United States.
The price of oil, one of Canada's major exports, fell 1.2% to $61.26 a barrel, extending its recent declines, on fears tariffs could push economies around the world into recession.
Canadian firms and consumers see a sharply higher chance of recession over the coming year as U.S. tariffs and possible retaliation fuel widespread uncertainty, the Bank of Canada said.
Canadian bond yields moved higher across the curve, tracking moves in U.S. Treasuries.
The 10-year was up 13.3 basis points at 3.017%, extending its rebound from a near two-year low during Friday's session at 2.783%.
Reporting by Fergal Smith; Editing by Cynthia Osterman
