The Canadian dollar edged lower against its U.S. counterpart on Tuesday ahead of an expected interest rate cut by the Bank of Canada and as the threat of U.S. trade tariffs drew renewed focus, leading to broad-based gains for the American currency.

The Canadian dollar strengthened against the greenback on Friday, and the yield on benchmark government debt slipped. The loonie was trading 0.4% higher at C$1.4323 to the greenback, or 69.82 U.S. cents,