Early trade in New York: Dollar drops to lowest in more than two years

NEW YORK: The dollar hit its lowest in two and a half years on Monday as broad risk sentiment improved overall, with investors looking to President-elect Joe Biden's economic team that is likely to push for more stimulus to counter the shock from the coronavirus pandemic.

The greenback was on course to post its worst monthly percentage loss since July. Continued month-end dollar selling has also undermined the dollar on Monday, as global fund managers rebalanced their portfolios amid sharp gains in US stocks, analysts said.

In contrast, bitcoin on Monday hit an all-time high of $19,864 and was last up 8.3% at $19,707. On the last day of the month, the dollar index was down 0.2% at 91.558. The euro rose to three-month highs versus the dollar of $1.20. The European Central Bank earlier signalled earlier this year it was carefully monitoring the euro-dollar exchange rate.

The dollar was flat to slightly lower against the Chinese yuan in the offshore market, at 6.5727. Brexit negotiations, meanwhile, remain the focus for the pound, which rose 0.4% versus the dollar to $1.3373, with the euro slightly down at 89.708 pence.