Early trade in New York: Dollar rises on virus surge, US stimulus worries

NEW YORK: The US dollar gained on Monday, rising for a second straight session, bolstered by safe haven bids amid surging coronavirus cases in Europe and the United States as well as a lack of progress on a US stimulus package.

The United States has recorded its highest number of new Covid-19 cases for two consecutive days and so has France. Spain announced a new state of emergency and Italy has ordered restaurants and bars to shut by 6 p.m.

On the stimulus front, US House Speaker Nancy Pelosi said on Sunday she expected a White House response on Monday to the latest relief plan, but there is little evidence a deal is close.

An index tracking the US dollar against a basket of six major currencies was last up 0.2% at 93.024.

The euro, which has the largest percentage share of the dollar index, fell 0.3% to $1.1820. It has slipped earlier by half a percent after the German Ifo business climate index fell for the first time in six months in October.

The dollar also rose 0.2% against the Japanese yen to 104.95.

The US dollar rose 0.5% against the Chinese yuan in the offshore market to 6.703, in a sign of caution as the Chinese government began discussions on its next five-year plan.

The Aussie dollar was last flat at 0.7138. The crown was down 0.2% at 9.2520 against the dollar, having seen nearly 1% drop earlier and stabilised against the euro at 10.9410.

The British pound also fell 0.2% against the dollar to $1.3016.