Early trade in New York: Dollar moves up against basket of currencies

NEW YORK: The US dollar inched higher against a basket of currencies on Tuesday, holding above the near two-week low hit in the previous session, as investors turned uneasy over new coronavirus flare-ups and local lockdowns in some countries.

The US Dollar Currency Index, which measures the greenback's strength against six major currencies, was 0.03% higher at 96.774. On Monday, the index had fallen as low as 96.565 with its 50-day moving average slipping below its 200-day average, viewed as a bearish signal.

"While risk appetite has held the upper hand, pushing stocks higher and the dollar lower, its grip remains slippery," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

Riskier currencies such as the commodity-driven Aussie, Norwegian crown and the Swedish crown, which have rallied strongly since April alongside increased risk appetite in global markets, eased on Tuesday.

Sterling held near a three-week high against the dollar as investors awaited details of the government's plans to support the British economy.