The Canadian dollar recovered from an earlier one-week low against its U.S. counterpart on Tuesday as American and Canadian officials agreed to meet to discuss a trade war that showed signs of heating up,

Canada’s dollar rose in a volatile session that saw trade war risks surge and then recede ahead of Wednesday’s Bank of Canada meeting, when policymakers are expected to lower interest rates to head off the economic threat from US levies.

MILAN — Canada has awarded multibillion-dollar contracts to domestic shipbuilding manufacturers in an effort to boost the country’s naval capabilities with new polar icebreakers and warships.

The U.S. dollar rose to a one-week high against the Canadian dollar on Tuesday after President Donald Trump hit Canada with more tariffs, while the euro hit a new four-month peak against the U.S. currency on hopes of a German defence spending deal.