Early trade in New York: Dollar climbs against basket of currencies

NEW YORK: The US dollar edged higher against a basket of currencies on Thursday, but held in its recent range as investors waited for fresh news on whether new US fiscal stimulus is likely in the near term.

The greenback has been whipsawed by swings in risk sentiment after US President Donald Trump on Tuesday halted negotiations with Democrats on a new economic package but later pushed for the approval of more targeted stimulus bills to offset economic damage from the coronavirus.

There was little new information on Thursday to move the dollar strongly in either direction. The dollar index gained 0.12% against a basket of major currencies to 93.73. It has fallen from a two-month high of 94.75 on Sept. 25.

The greenback was little changed against the Japanese yen at 105.97 yen, while the euro fell 0.17% to $1.1740. The dollar index has also weakened in the past two weeks on bets that Democrat presidential candidate Joe Biden is more likely to win the Nov. 3 US election, and that Democrats could also win the Senate.

The New Zealand dollar dropped as much as half a percent after central bank officials again hinted that negative interest rates are possible. It was last down 0.06% at $0.6575. Sterling traded 0.10% lower at $1.2905 as uncertainty about Britain's exit from the European Union weighed on the currency.