Early trade in New York: Dollar falls to lowest level in almost 3 months

NEW YORK: The dollar index fell on Friday, hitting its lowest level in almost three months, after strong economic data from China favored commodity currencies over safe havens and equity markets continued their rally. The dollar has fallen more than 2.2% so far this month as global market sentiment has surged following Joe Biden's election victory and positive Covid-19 vaccine progress, which reduced demand for the safe-haven currency.

The dollar was down 0.24% against a basket of major currencies after hitting its lowest level since Sept. 1. The dollar-yen was down 0.16%. The Australian dollar - seen as a liquid proxy for risk - hit its highest level in nearly three months in early London trading and was last up 0.5% at 0.7394.

Sterling was down 0.03% against the dollar and the euro was up 0.26% against the British currency. The euro was up 0.29% at $1.1945, having shown little reaction to downbeat comments from the European Central Bank's chief economist Philip Lane on Thursday.