At around 11am in Tokyo (0200 GMT), the loonie was up 0.7% from its Friday close at 1.2814 to one US dollar, following reports from Canadian media on a trade deal.

The rise pushed the Canadian currency to its strongest level since May.

Canada’s CTV cited a high-level American source as saying the two sides had reached an agreement and that a joint statement was expected.

Another Canadian channel, CBC, said a “senior source” confirmed that a deal had been reached on significant sections of a new Nafta.

Word of an agreement followed an emergency cabinet meeting called by Canadian Prime Minister Justin Trudeau ahead of a deadline for getting a revised agreement to the United States Congress.

US President Donald Trump triggered a review of the 1994 trade pact and talks between the US, Canada and Mexico began last August, after Trump called it “one of the worst trade deals in history.”