Early trade in New York: Dollar set for biggest weekly surge since early April

NEW YORK: The dollar extended its gains on Friday and was on track for its biggest weekly gain since early April, as investors sought safety amid a slowing economic recovery, rising coronavirus infections in Europe and uncertainty surrounding the upcoming US elections.

While orders for key US-made capital goods increased more than expected in August, orders for durable goods - ranging from toasters to aircraft that are meant to last three years or more - rose 0.4% in August after jumping 11.7% in July.

While the dollar fell slightly on Thursday, for the first session in five, as equities rose on hopes for US stimulus, the greenback's rally resumed on Friday as worries resurfaced.

The dollar index, which measures the greenback against a basket of major currencies, was last up 0.35% at 94.642 and was on track for its best weekly percentage gain since April 5th.

The euro was down 0.4% at $1.1625, close to two-month lows hit on Thursday.

Riskier currencies fell, with Australian dollar lower 0.3% on the day and set to end the week down around 3.6%, in its biggest weekly decline since March. The New Zealand dollar was down 0.15% against the greenback.

The yen was lower against the dollar at 105.65.