The Canadian dollar declined against its most major counterparts in the New York session on Monday, as rising economic uncertainty and tariff concerns dampened sentiment.

Traders are mulling over comments from U.S. President Donald Trump that the U.S. economy faced "a period of transition."

In a Fox News interview that aired Sunday, Trump declined to rule out a recession this year, saying "There is a period of transition" that will eventually pay off for the economy.

However, Trump's commerce secretary, Howard Lutnick, was more definitive and said "absolutely not" when asked whether Americans should brace for a downturn.

The loonie fell to more than a 7-month low of 101.68 against the yen, more than 4-year low of 1.5666 against the euro and a 6-day low of 1.4469 against the greenback. The currency may challenge support around 97.00 against the yen, 1.58 against the euro and 1.465 against the greenback.

In contrast, the loonie recovered to 0.9066 against the aussie, from an early 3-month low of 0.9125. If the currency continues its uptrend, 0.89 is possibly seen as its next resistance level.

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